Ad
Ad
Tesla's 2024: $94B market dip, global challenges, and Musk's wealth shrinks, facing Jeff Bezos' ascent to the top.
Tesla Inc., after a stellar performance in 2023, is grappling with a turbulent start to 2024, witnessing a staggering loss of over $94 billion in market valuation within the first two weeks. The electric vehicle giant, led by CEO Elon Musk, is encountering a series of challenges, including setbacks in China, labour cost concerns, and a slowing demand for EVs in the US.
Tesla's distress began with a surprising shift in the strategy from Hertz Global Holdings Inc., a major car rental player, causing a ripple effect on the EV manufacturer's market perception. Additionally, Tesla's decision to implement another round of price cuts on its Chinese-made cars has also intensified concerns, triggering what the analysts describe as a "race to the bottom" in the highly competitive Chinese EV market.
Investors' primary apprehension revolves around Tesla's apparent stagnation in growth, fueled by the aggressive price cuts and the signs of escalating labour costs. The EV industry is experiencing a cyclical downturn, but competitive dynamics are worsening these challenges, leading to dropping margins and increased concerns among the stakeholders.
Tesla's market capitalization witnessed the most significant drop since its IPO in 2010, with a 12% decline in the first two weeks of January 2024. This percentage drop is the most substantial since 2016, reflecting a challenging start to the year for the electric vehicle pioneer.
Tesla's aggressive approach to cutting prices since early 2023 to stimulate demand has resulted in a gradual erosion of its once-substantial profit margin. The automotive gross margin, excluding regulatory credits, fell from 27.9% to 16.3% in the third quarter of the previous year, signaling a concerning trend for the company.
Logistical hurdles, including rerouting shipments due to military actions and security concerns in the Red Sea, have further hampered Tesla's operations. The suspension of most production at its Berlin plant adds to the challenges faced by the company, impacting its ability to meet demand efficiently.
Tesla's fourth-quarter delivery numbers, although better than expected, positioned the company behind China's BYD Co. in global electric-car sales. This shift has served as a rude awakening for investors, turning Tesla from last year's eighth-best S&P 500 performer to the eighth-worst in the early days of 2024.
Also Read: Can Smartphone Brands Compete with Tesla in making Autonomous/Electric Cars?
Elon Musk, the world's richest person, has seen a personal setback, with a 3 billion reduction in his net worth in the first weeks of 2024. As Jeff Bezos threatens to dethrone Musk from the top spot, Tesla faces a challenging road ahead. Despite current challenges, Tesla remains a pivotal player in the global shift towards electric vehicles, banking on its lead over potential rivals.
Ad
Ad
MG Astor Facelift Incoming? Astor-Based Hybrid VS SUV Spotted on Indian Roads; Check Details
MG Motors is testing the upcoming facelift version of the Astor, with a new VS SUV spotted without camouflage. The VS, an Astor-based hybrid SUV, rivals the Creta and Seltos. Sporting a sporty design, it features a 1.5-liter petrol engine generating 175 bhp and 142 Nm of torque, paired with a CVT gearbox.
21-May-2024 10:13 AM
Read Full NewsMG Astor Facelift Incoming? Astor-Based Hybrid VS SUV Spotted on Indian Roads; Check Details
MG Motors is testing the upcoming facelift version of the Astor, with a new VS SUV spotted without camouflage. The VS, an Astor-based hybrid SUV, rivals the Creta and Seltos. Sporting a sporty design, it features a 1.5-liter petrol engine generating 175 bhp and 142 Nm of torque, paired with a CVT gearbox.
21-May-2024 10:13 AM
Read Full NewsKTM Launches 2024 200 Duke and 250 Duke with Exciting New Colors
Discover the 2024 KTM 200 Duke and 250 Duke motorcycles in fresh, eye-catching colors. Experience the thrill of the ride with these exciting new additions.
21-May-2024 10:05 AM
Read Full NewsKTM Launches 2024 200 Duke and 250 Duke with Exciting New Colors
Discover the 2024 KTM 200 Duke and 250 Duke motorcycles in fresh, eye-catching colors. Experience the thrill of the ride with these exciting new additions.
21-May-2024 10:05 AM
Read Full NewsBYD Seal Electric Sedan Achieves Over 1,000 Bookings Within 3 Months Of Its Launch
The BYD Seal is available in India in three variants. These include the base variant dynamic, the mid variant premium, and the top end variant performance.
21-May-2024 10:04 AM
Read Full NewsBYD Seal Electric Sedan Achieves Over 1,000 Bookings Within 3 Months Of Its Launch
The BYD Seal is available in India in three variants. These include the base variant dynamic, the mid variant premium, and the top end variant performance.
21-May-2024 10:04 AM
Read Full NewsMercedes Benz Maybach GLS 600 and AMG S63 India Debut Tomorrow; Details
Mercedes-Benz will debut the 2024 Maybach GLS 600 and AMG S63 E Performance sedans in India on May 22. The Maybach GLS 600 features exterior and interior upgrades, while the AMG S63 offers enhanced performance and advanced features, aligning with Mercedes' plan to launch 9 new vehicles in India in 2024.
21-May-2024 06:06 AM
Read Full NewsMercedes Benz Maybach GLS 600 and AMG S63 India Debut Tomorrow; Details
Mercedes-Benz will debut the 2024 Maybach GLS 600 and AMG S63 E Performance sedans in India on May 22. The Maybach GLS 600 features exterior and interior upgrades, while the AMG S63 offers enhanced performance and advanced features, aligning with Mercedes' plan to launch 9 new vehicles in India in 2024.
21-May-2024 06:06 AM
Read Full NewsJeep Meridian 2024 Facelift Spotted With ADAS While Being Tested
The 2024 Jeep Meridian facelift has again been spotted with ADAS hardware visible. Here's everything you need to know.
20-May-2024 11:37 AM
Read Full NewsJeep Meridian 2024 Facelift Spotted With ADAS While Being Tested
The 2024 Jeep Meridian facelift has again been spotted with ADAS hardware visible. Here's everything you need to know.
20-May-2024 11:37 AM
Read Full NewsMahindra Scorpio N, Thar and Bolero Neo Receive Significant Price Hike; Check New Prices
Mahindra has raised prices for its popular SUVs due to high demand. The Scorpio N now costs up to Rs. 25,000 more, starting at Rs. 13.85 lakh. The Thar has increased by Rs. 14,000, starting at Rs. 11.35 lakh. The Bolero Neo's starting price is now Rs. 9.94 lakh.
20-May-2024 09:59 AM
Read Full NewsMahindra Scorpio N, Thar and Bolero Neo Receive Significant Price Hike; Check New Prices
Mahindra has raised prices for its popular SUVs due to high demand. The Scorpio N now costs up to Rs. 25,000 more, starting at Rs. 13.85 lakh. The Thar has increased by Rs. 14,000, starting at Rs. 11.35 lakh. The Bolero Neo's starting price is now Rs. 9.94 lakh.
20-May-2024 09:59 AM
Read Full NewsAd
Ad
Maruti Swift
₹ 6.49 - 9.64 Lakh
Isuzu V-Cross
₹ 21.20 - 30.96 Lakh
BMW M4 Competition
₹ 1.53 Cr
Force Motors Gurkha
₹ 16.75 - 18.00 Lakh
Skoda Kushaq
₹ 11.99 - 20.49 Lakh
Mercedes-Benz Maybach GLS 2024
₹ 3.00 Cr
Mercedes-Benz AMG S 63
₹ 3.00 Cr
Kia EV9
₹ 80.00 Lakh
Audi A3 2024
₹ 35.00 Lakh
Hyundai Kona Electric 2024
₹ 23.75 Lakh
Ad
Ad
Ad