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Tesla, led by Elon Musk, faces an $80 billion stock plunge, signaling challenges in sales growth and industry competition.
In a shocking turn of events, Tesla, the electric vehicle industry leader under the guidance of CEO Elon Musk, experienced a dramatic fall in its stock value, shedding a staggering $80 billion in market capitalization. The drop followed a warning from Musk about a potential slowdown in sales growth for the year 2024, coupled with weaker-than-expected quarterly financial results. As Tesla's shares faced their sharpest day trading percentage loss in over a year, concerns arose over the impact on the broader electric vehicle industry and the company's valuation in the face of growing competition.
Shares of Tesla (TSLA) took a significant hit at the opening bell on Thursday, January 25, as the electric vehicle giant delivered weaker-than-expected quarterly financial results and warned investors about a potential slowdown in sales growth for 2024. The announcement by CEO Elon Musk triggered a market sell-off, causing the stock to tumble over 12%.
Despite implementing price cuts that have already impacted margins, Elon Musk informed investors on Wednesday that Tesla anticipates a "notably lower" sales growth in the coming year. Musk highlighted the company's strategy to shift its focus to a more affordable next-generation electric vehicle, slated to be produced at the Texas factory in the latter half of 2025. However, he acknowledged the challenges of ramping up production due to the incorporation of cutting-edge technologies.
Tesla's stock witnessed its sharpest Day Trading percentage loss in more than a year, with a staggering $80 billion wiped off its market value on Thursday. This plunge pushed Tesla's total market capitalization loss for the month to approximately $210 billion.
Also Read: Tesla Faces Turbulence as Market Valuation Drops by Over $94 Billion in 2024
The ripple effect of Tesla's downturn extended to other electric vehicle makers, with shares of Rivian Automotive Inc, Lucid Group, and Fisker experiencing declines ranging from 4.7% to 8.8%. The entire EV industry has been grappling with a demand slowdown for over a year, and Tesla's price cuts are expected to intensify the pressure on both startups and established automakers like Ford.
Analysts expressed growing concerns over Tesla's ability to boost sales without compromising operating margins, especially in the face of increasing competition, particularly in China. At least nine brokerages downgraded Tesla's stock, while seven raised their ratings. The company currently holds an average "hold" rating with a median price target of $225, which is 23% higher than Thursday's closing price of $182.63.
According to data from analytics firm Ortex, Tesla short sellers have already made a remarkable $3.45 billion profit in 2024, making it the most profitable short trade in the U.S. market so far this year.
Tesla's stock currently trades at nearly 60 times its 12-month forward earnings estimates, according to data from LSEG. This premium valuation surpasses other notable stocks in the "Magnificent Seven" group, including Apple, Microsoft, and Nvidia. Analysts are questioning the sustainability of this valuation if Tesla's sales growth and margins continue to weaken.
Analyst Toni Sacconaghi from Bernstein remarked that Tesla is increasingly resembling a traditional auto company. This observation reflects growing skepticism among analysts about Tesla's unique position in the market as it faces challenges related to sales growth, competition, and operating margins.
As Tesla's stock witnessed a historic freefall, the electric vehicle giant finds itself at a critical point. Elon Musk's warning about a potential slowdown in sales growth for 2024, coupled with weaker-than-expected quarterly results, has raised concerns among investors and analysts alike. The significant market value wipeout prompts a reassessment of Tesla's standing in the electric vehicle landscape, with questions about competition, operating margins, and the sustainability of its premium valuation. As the industry grapples with a broader slowdown in demand, Tesla faces the challenging task of navigating a path forward while redefining its identity in an ever-evolving automotive market. The coming months will undoubtedly be pivotal for Tesla as it seeks to address these challenges and reassure investors about its long-term prospects.
Discover the new-generation Splendor+ XTEC 2.0 by Hero MotoCorp, now available at ₹ 82,911 (ex-showroom, Delhi). Explore its advanced features and superior performance.
The latest generation of the Hero Splendor commemorates the 30th anniversary of the world's highest-selling motorcycle, featuring several premium and segment-first upgrades. This new model retains the classic Splendor silhouette while introducing contemporary enhancements such as a new LED headlamp with a high-intensity position lamp (HI PL) and an H-shaped signature taillight for a distinctive look.
The Hero Splendor+ XTEC 2.0 comes equipped with:
Ranjivjit Singh, Chief Business Officer - India BU, Hero MotoCorp, remarked on the launch:
"Splendor is an iconic brand with an unmatched leadership spanning 30 years. The motorcycle has won millions of hearts and continues to encourage India's growth by empowering people through accessible mobility.
Splendor's enduring success is a testament to Hero MotoCorp's continuous innovation, brand trust, and product reliability. A perfect blend of iconic design, latest technology, and practicality, the Splendor is an emotion, a symbol of progress, and the unwavering aspirations of 40 million happy customers."
The new-generation Splendor+ XTEC is powered by the well-known 100 cc engine, producing 7.9 bhp at 8,000 rpm and 8.05 Nm of peak torque at 6,000 rpm. It features the Idle Stop Start System (i3S) for improved fuel economy, with a claimed efficiency of 73 kmpl.
Additionally, the service interval has been extended to 6,000 km, significantly reducing the running cost. Hero MotoCorp offers a warranty of 5 years or 70,000 km. The Splendor+ XTEC 2.0 is available in three dual-tone colors: Matte Grey, Gloss Black, and Gloss Red.
New facelifted MG Gloster is coming soon. Here's what to expect from it!
MG Gloster has been in the Indian market since 2020 and it has been rivaling the SUVs like Toyota Fortuner, Skoda Kodiaq, Hyundai Tucson, etc. However, it was due for a mid life facelift for a long time. Finally, MG is all set to give its flagship SUV a comprehensive makeover in the coming few months in the form of 2024 MG Gloster facelift.
Based on the Maxus D90, from the house of SAIC Motors, the Gloster 2024 will come with a completely new front and rear end. On the design front, it will get vertically placed LED headlamps, horizontal placed slim LED DRLs, a massive hexagonal grille and rugged cladding all around the SUV.
Moreover, the front facing radar integrated into the grille along with the front windshield mounted camera confirms the presence of level 2 ADAS with camera + radar configuration.
Although not confirmed, we also expect self/auto parking feature in the 2024 MG Gloster facelift because of the front ultrasonic parking sensors.
Additionally, the facelifted MG Gloster is expected to continue with the same engine and transmission with no mechanical changes.
The VinFast VF 3 comes equipped with an electric motor which is positioned on the rear axle. This powertrain generates a maximum power of 42 bhp and 110 Nm of torque.
Key Highlights:
VinFast VF 3: VinFast has recently revealed the detailed specs of the upcoming hatchback VF 3. The VinFast VF 3 is an electric sub-compact SUV that is set to rival cars like the MG Comet EV and Tata Punch EV in India. VinFast has two electric vehicles in its lineup to launch in India. The brand has already patented the VF 3’s design in India. According to the VinFast, they received around 27.649 bookings for the vehicle when they opened the pre-booking windows previously and these numbers were received in just 66 hours.
The VinFast VF 3 comes equipped with an electric motor which is positioned on the rear axle. This powertrain generates a maximum power of 42 bhp and 110 Nm of torque. Talking about the acceleration, the VinFast VF 3 can sprint from 0 to 50 in just 5.3 seconds. The electric SUV is said to provide a range of 210 km on a solitary charge. For charging the E-SUV, a DC charger is expected to be on offer that will take around 36 minutes to charge the E-SUV.
The electric SUV has a two-door configuration and a four-seat layout. Being a compact SUV, the VinFast VF 3 will come with an impressive ground clearance of 191 mm and a wheelbase of 2075 mm.
The VinFast VF3 comes with a price tag of VND 322 million (nearly Rs. 10.54 lakh). There is also a variant without a battery pack which is priced at VND 240 million (nearly Rs. 7.86 lakh). Additionally, there is a battery subscription on offer which is a more affordable option for the customers. Once launched in India, the VinFast VF 3 will rival the likes of MG Comet and Tata Punch.
Explore the BMW R 1300 GS on BMW India website, featuring three variants to choose from. Find the perfect adventure companion today.
BMW Motorrad is gearing up to launch its flagship adventure tourer, the R 1300 GS, in the Indian market. The motorcycle is now listed on BMW's India website and will be offered in three variants: Trophy, Triple Black, and Option 719 Tramuntana.
Wheels: Both variants come with alloy wheels.
Tyres:
The GS Trophy is equipped with dual-purpose tyres, while the Triple Black features road-biased tyres.
Wheels: Equipped with tubeless spoked rims.
Special Features
All three variants are powered by the same 1,300 cc boxer-twin cylinder engine, delivering:
This engine is the most powerful boxer engine BMW Motorrad has ever used.
The R 1300 GS features an all-new chassis and suspension setup. Compared to its predecessor, the new design has resulted in a weight reduction of 12 kg.
The motorcycle comes standard with four riding modes:
Additionally, riders can opt for 'Pro' modes for enhanced performance.
BMW Motorrad has equipped the R 1300 GS with a range of advanced features as standard, including:
The BMW R 1300 GS, with its advanced features and powerful engine, is set to be a significant addition to the adventure tourer segment in India. The three variants offer distinct features catering to different riding preferences and styles.
In a recent development, the brand has released a new teaser of the sportier version of the hatchback. The Altroz Racer will hit the ground in mid-June. Check out more details below.
Tata Altroz Racer: Tata Motors has been teasing the upcoming Atroz Racer for some time now. In a recent development, the brand released a new teaser featuring the sportier version of the hatchback. The Altroz Racer will hit the ground in the mid-June. Looking at the newly released teaser, we can get a clear idea of the features and design language of the upcoming hatchback. If you are curious to know more about the sporty hot hatch, get more details below.
The new teaser showcases some major design elements of the upcoming sports hatchback. Some noticeable things include a vibrant orange paint option with a blacked-out roof which looks similar to the one that was showcased at Auto Expo 2023. Additionally, there are black accents which can be seen on the bonnet, shoulder line, rear door handles and pillars which enhances the visual appeal of the hatchback.
Other noticeable design elements include a new dual white stripes that runs along the roof and bonnet. Also, there’s a Racer badging and shark fin antenna which looks simply great and makes it look like a real sports car in all terms.
The Atroz hatchback gets most of the modern features which include a 10.25-inch infotainment touchscreen display supporting Apple CarPlay and Android Auto, a 360-degree camera, a digital instrumental console, HuD, voice-controlled sunroof, connected car technology, a rear parking sensor and cruise control.
the Atroz Racer will be powered by a 1.2 litre, 3-cylinder turbo petrol engine which makes 120 bhp of power and 170 Nm of torque. The 1.2-litre turbo petrol unit will be mated with a 6-speed manual and Dual Clutch Automatic gearbox (DCA) gearbox. Despite generating similar power figures, both the Hyundai i20 N Line and Altroz Racer will differ in performance, depending on the tuning.
As far as safety is concerned, the Altroz Racer follows Tata’s standards with features such as 6 airbags, electronic stability control (ESC), TPMS, ISOFIX mounts, and 3-point seatbelts with reminders for all. Being an improved version of the standard Altroz, which scored 5 stars on Global NCAP crash tests, the Altroz Racer will definitely be safer in all terms.
Jawa Yezdi Motorcycles has launched the Mountain Pack for the Yezdi Adventure, adding touring accessories to the standard kit.
Jawa Yezdi: Jawa Yezdi Motorcycles has launched the Mountain Pack for the Yezdi Adventure, adding touring accessories to the standard kit. Priced at ₹2.15 lakh (ex-showroom), the Mountain Pack was previously an optional accessory for ₹17,000 and is now included in the bike's ex-showroom cost. This offer coincides with the start of the mountain riding season and is available for a limited time.
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