Tesla Inc. faces a decline in its market value below $500 billion, from $1 trillion, as its shares continue to drop in 2024, according to Yahoo Finance.
Earlier reports from VCPost show that it was worsened by a round of 10% global workforce layoffs Elon Musk sent via memo, which, in turn, has heightened concerns among investors about the company's future prospects.
In detail, the stock plummeted by about 4% to below $154 on Tuesday, Apr. 16, in New York, marking a 38% drop for the year. Tesla's struggles began in October when it signaled a slowdown in demand for electric vehicles (EVs), a trend accentuated by disappointing first-quarter sales reported this month.
Analysts attribute Tesla's decline in value to lower demand rather than supply issues, highlighting the challenge the company faces in maintaining its position in the EV market. Elon Musk had to resort to advertising despite hating it to compete with rising Chinese EV companies, Xiaomi in particular.
At the moment, there are ambitions in self-driving technology for Tesla. However, analysts stress the importance of producing affordable EVs to sustain growth in the short term. With Tesla set to report its first-quarter results on April 23, investors await clarity on the company's strategic approach amidst mounting uncertainties on its global direction.
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