Sun 31 March 2024 ▪
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As the third quarter draws to a close, it’s time to take stock of the stock market. For Tesla, it’s the color red that dominates: its TSLA stock has seen its performance decline. Details!
Tesla, the electrified iron horse, hits the stock market wall
Elon Musk, once at the top, had to pay a high price Descending into Tesla stock hell : He had to give up his position to LVMH boss Bernard Arnault. However, the latest news does not give him any relief. The electric vehicle giant has recently seen an alarming decline in its performance.
As stock markets enter 2024 with a bang, you are hereTitan is an electric vehicle spearheaded by eccentric billionaire Elon Musk loss of speed. Forbes says the automaker, once a Wall Street darling, is facing increasingly strong headwinds.
Tesla’s vehicle delivery growth slows, while Its profit margins are collapsingWorrying signs for investors. But behind this apparent defeat lies a deeper reality, as Bernstein analyst Tony Cecconaghi points out.
” Tesla’s stock moves are largely justified by lower fundamental expectations, as opposed to more descriptive moves “, he notes, referring to frequent fluctuations in Tesla’s stock, often fueled by headlines involving Musk rather than its concrete results.
The numbers don’t lie. With higher valuations than its competitors in the automotive sector and even in technology companies, Tesla seems to have achieved that. delicate peaks. Its forward price-to-earnings ratio is ten times that of General Motors and significantly higher than that of artificial intelligence giant Nvidia.
But it’s not just in markets that Tesla is losing ground. According to Forbes, Musk’s fortune, once the largest in the world, has melted away, pushing him to third place behind Bernard Arnault and Jeff Bezos. A collapse that speaks volumes about the challenges facing the automotive technology icon.
Tesla’s downfall: A challenge for Musk and the auto industry
When Global demand for electric vehicles is struggling to take offConsumers are reluctant in the face of higher costs, leading to increases Reducing government subsidies and increasing interest rates. In this regard, Tesla, under the leadership of Elon Musk, is increasingly weakening its position in the markets.
Musk, who has invested much of his personal wealth in Tesla, is feeling pinched by the company’s declining stock price. her financial decline In January, more marked after canceling its record remuneration plan of $51 billion. With about 13% of Tesla’s stock, he has a deep connection to the company’s future.
l’Tesla stock volatility Not unnoticed, its price has fluctuated wildly over the quarters. After arriving A market capitalization of over $1,000 billionThe company saw a staggering 75% drop, largely due to controversy surrounding the takeover of Musk’s social media company.
But Tesla is not alone in this mess. Its American rivals like Rivian and Chinese rivals like NIO are also struggling, with drops of nearly 50% since the beginning of the year. Fisker, another big player in the field, is on the verge of bankruptcy, just three years after reaching an $8 billion valuation.
In this uncertain economic landscape, the future of the electric automobile industry seems to be subject to stock market volatility.
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disclaimer
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decisions.
