Elon Musk’s Tesla has taken a big hit in the stock market across the last several sessions after the company released weak earnings and poor prospects for 2024 growth. Musk forecasted “notably lower” growth in sales this year, a sign that Americans are quickly losing interest in the electric vehicle (EV) market that Tesla currently dominates.
CNBC reports that shares in Elon Musk’s Tesla fell by about 11 percent from about $208 per share on Wednesday to just under $184 on Monday morning following a weak earnings report by the EV giant and an even more concerning, comments on the company’s growth slowing considerably this year.
Dead Tesla pushed in frigid Chicago temps (Fox 32 Chicago/YouTube)
The electric car company’s operating margin fell to 8.2 percent from the year from 16 percent in the prior year, a sign of Musk’s strategy of relentlessly slashing pricing to attract new buyers.
CNBC writes:
Meager growth in auto revenue was partly due to a reduced average selling price following steep price cuts around the world in the second half of the year. Net income for the quarter more than doubled to $7.9 billion, or $2.27 per share, from $3.7 billion, or $1.07 per share, a year earlier. The increase was mostly due to a $5.9 billion one-time noncash tax benefit.
Tesla said in its investor presentation that vehicle volume growth in 2024 “may be notably lower” than last year’s growth rate as the company works toward launching its “next-generation vehicle” in Texas. The company cautioned investors that it’s “currently between two major growth waves.”
As reported by Bloomberg, Morningstar analyst Seth Goldstein explained, “Tesla is signaling that the days of 50% or even 30% to 40% growth year-over-year is not going to happen in 2024. At a certain point, you can’t cut prices anymore.”
Musk is apparently pinning his hopes on a mass market EV cheaper than his current offerings. This flies in the face of the general feeling of the market towards EVs in America, where consumers are turning away from the electric cars.
Tesla burning in California (KCRA/YouTube)
Speaking to investors about this future low cost EV, Musk said, “That will be a challenging production ramp. Once it’s going, it will be head and shoulders above any other manufacturing technology that exists anywhere in the world. It’s next-level.”
Despite Musk’s promises, it is clear that Tesla is facing great challenges in achieving growth in EV sales, and the 50 percent growth once touted by Musk and his management team seems like wishful thinking.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.