Shares in Tesla experienced a sharp decline of up to 11% as the market opened, resulting in a staggering $73 billion reduction in the company’s market value. This plunge came shortly after Tesla issued a warning about the deceleration in growth of electric car sales and the looming threat from Chinese competitors, as reported by CNN.<\/p>\n\n\n\n
During an earnings presentation on Wednesday, the world’s most valuable automaker disclosed that its sales growth for the current year “may be notably lower” than the previous year, citing a focus on developing the “next-generation” vehicle, likely a more affordable model. Despite achieving a substantial 38% increase in deliveries in the past year compared to 2022, Tesla fell short of its earlier target of sustaining a 50% annual growth rate over several years.<\/p>\n\n\n\n
The financial results for the last quarter added to the disappointment, with adjusted earnings per share plummeting by 40% from the previous year. Although revenue showed a 3% increase, surpassing $25 billion, it still fell below market expectations.<\/p>\n\n\n\n
This marks the second consecutive quarter where Tesla missed analysts’ earnings forecasts, following a series of better-than-expected results since the beginning of 2021. Despite doubling in price throughout 2023, Tesla’s shares faced a challenging start in 2024, already witnessing a 16% decline before the latest earnings report. Currently, the stock is trading at its lowest level since April of the previous year, as reported by CNN.<\/p>\n\n\n\n
Thursday’s intraday losses were comparable to a significant 11.4% fall in late December 2022, when concerns about Tesla’s sales, profitability outlook, and the overall health of the U.S. economy troubled investors.<\/p>\n","protected":false},"excerpt":{"rendered":"
Shares in Tesla experienced a sharp decline of up to 11% as the market opened, resulting in a staggering $73 billion reduction in the company’s market value. This plunge came shortly after Tesla issued a warning about the deceleration in growth of electric car sales and the looming threat from Chinese competitors, as reported by […]<\/p>\n","protected":false},"author":1,"featured_media":13936,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[25,267],"tags":[],"class_list":["post-13930","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-tech"],"yoast_head":"\n