Tesla shares slide in 2024 as investors mull their next moves
It has been sorry start to the year for Elon Musk and the thousands of loyal Tesla (TSLA:NASDAQ) shareholders. January alone has seen the stock lose 25% of its value, wiping nearly $200 billion off its market cap as the electric car maker continues to grapple with increasing competition, eroded profit margins and consumers thinking twice about big-ticket purchases like a new car.
According to Sharepad, Tesla is the second-worst performing stock in the S&P 500 over the past month and it sits squarely bottom of the pile among the Nasdaq 100.
This is despite beating delivery expectations in the last quarter of 2023, reported in early January.
There were already simmering doubts about Musk’s 20% delivery growth target for 2024, a target that he has now admitted will be tough to achieve, while in the fourth quarter of 2023 it was overtaken as the biggest volume EV seller in the world by China’s BYD (002594:SHE).
With Musk having seen his share award package from 2018 ruled out by a Delaware court into the bargain, these are tumultuous times for Tesla. Most of last year’s 100% gains have now been completely wiped out and shareholders’ loyalty is again being tested. Many will undoubtedly stick for the long haul, but how many will twist has become an awkward question.
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