The shares of Elon Musk’s electric car company Tesla are seeing a huge decline in 2024. The reason for the decline in the company’s shares is believed to be the slowing down in sales growth, due to which the company has recently reduced its global work force by about 10 percent.
Tesla shares will fall 37 percent in 2024
US-listed Tesla stock fell 2.7 percent in Tuesday’s trading session and closed at $157.11. Due to this, Tesla’s market cap went below $500 billion. Tesla shares have declined 37 percent since the beginning of 2024. It is the second largest falling stock in the S&P 500 index in 2024. Due to this, there has been a decline of 290 billion dollars in the wealth of the shareholders. American media reports said that Tesla shares have not given such a weak closing in the last one year. It closed just slightly above its 52-week low.
Company’s sales weaker than expected
Earlier this month, Tesla presented sales figures for the first quarter of 2024. This is much lower than analyst estimates. This has cast a cloud of doubt over Tesla’s growth story. Also, in a report in the American media it was told that the company has canceled the plan to make cheap EV. The company will currently focus on robotaxi. The company can present it in August.
Challenges remain for the company
The company is facing competition in the global market. Recently, Chinese company BYD has become the world’s number one electric car company by defeating Tesla. Due to this, the company has to reduce prices to attract customers.
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