Tesla Has Lost $240 Billion In Value This Year, Why?
Can Tesla stay on top?
Tesla used to be the hottest stock in town, famously valued way above any other automaker. Its rocket-like growth seemed it would never stop. But, so far this year, Tesla has lost a staggering $240 billion in value, making it the worst-performing company in the S&P 500! Tesla’s value has slumped in the past, but they were little blips compared to this colossal downturn. But why? Tesla’s Model Y was the best-selling car in the EU last year, the Cybertruck has started deliveries, and Tesla is building a custom supercomputer to significantly advance its self-driving AI; surely, all this should bolster Tesla’s value? Well, there are three main reasons. Let me explain.
The first is China. Tesla is being absolutely hammered by this eastern juggernaut’s EV industry.
Tesla actually warned its investors back in January that its sales figures would be “notably lower” than 2023 levels. Why? Well, Tesla’s sales figures in China are way behind where they were predicted to be. Domestic companies in this market are massively undercutting Tesla with EVs that have the same or better range, charge times and performance for thousands of dollars less than a Tesla. They can do this thanks to better manufacturing, more integrated raw material supply, and better proprietary technology. In…
