Shares of electric car maker Tesla have had the worst start to the year in their history. In two weeks since the beginning of 2024, the company has lost $94 billion in value.
Bloomberg drew attention to the drop in Tesla’s capitalization. The agency points out that, in percentage terms, the 12% drop in Tesla shares is the largest since 2016, when in the first nine business days of the year the titles lost 14% of their value.
After the stock market closed this week, Tesla’s share price on the Nasdaq is below $219, although the company’s shares were valued at $250 in early January.
The agency’s interlocutor stated that the main concern of investors in the electric car manufacturer has to do with the stagnation of the company’s growth. Bloomberg writes that Tesla’s chances of reversing the negative trend “do not look good.”
“We are experiencing a cyclical slowdown in the electric vehicle market, but competitive dynamics are only exacerbating cyclical pressures,” said Ivana Delevska, chief investment officer at Spear Invest.
In December it was reported that Chinese company BYD could overtake Tesla in global electric vehicle sales in the current quarter.
Another problem for the American company is disruptions to supply chains due to problems with the security of shipping in the Red Sea, which is why Tesla will suspend production at the Berlin plant.
The fall in Tesla’s value caused a decline in the fortune of the company’s director, Elon Musk. According to the Bloomberg Billionaires Index, since the beginning of the year the world’s richest businessman has lost $23 billion, while his capital is now estimated at $206 billion.
Photo: Unsplash
Author:
Akhmed Sadulayev
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
