2024-04-03 18:49:01
The first quarter of 2024 turned out to be bleak for Tesla. The company’s stock fell 29 percent and its market capitalization about 30 percent to $550 billion. Analysts blamed these results on a modestly slowing electric car market, challenges the company faces in China; as well as the public reaction to the behavior of Tesla CEO Elon Musk.
One of the reasons for the fall in stocks is a reduction in demand in China, which cannot be stimulated by lower prices. In February, the huge factory in Shanghai delivered 19% fewer cars to the world’s largest car market on an annual basis, and in March – 35% fewer. Last week, Tesla further reduced production at its Shanghai gigafactory.
Shares of “Tesla” have also lost value after statements by the owner Elon Musk about artificial intelligence. Another problem is the case surrounding the payment of Musk of 56 billion dollars, by the board of directors in 2018. Then the head of the company was officially deprived of his salary. The court called the amount “excessive” and ordered the payment to be cancelled.
The former richest man in the world lost another 40 billion due to the drop in Tesla shares. It owns a 20% stake worth about $110 billion. The remaining 80 billion is invested in other businesses – SpaceX, X (formerly Twitter), Neuralink and The Boring Company.
Meanwhile, Tesla decided to change its policy and increase prices. The company has raised the price of all Y models in the US by a thousand dollars. For the base version, Americans will now have to pay $44,990. This will also affect China, where the price of the bestseller will rise by five thousand yuan.