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Tesla and Elon Musk in peril as China sales dip and stocks slide 30% in Q1

Tesla’s stocks have dropped by 30 percent as Elon Musk’s leadership continues to attract criticism in the world of business.
Reports also outline how Tesla’s prominence in the Chinese electric vehicle market continues to weaken with the emergence of major competitors in the country.
The stock slide made it the worst-performing stock in the S&P 500, which is up 10.2 percent overall.
This comes after Tesla admitted in its 2023 fourth-quarter report that its “vehicle volume growth rate may be notably lower than the growth rate achieved in 2023.”
Morgan Stanley’s Adam Jonas, a big backer of Tesla on Wall Street , has raised concerns over Tesla’s performance.
READ MORE: Elon Musk humiliated as Chinese EV rival take sales crown from Tesla
He said: “I still struggle to think of another company which provided such scant level of details on the forward-year outlook.
“Our team is left with the impression that either (a) visibility is poor or (b) there are downside risks in the broader EV market outside of Tesla’s control.”
In China, Tesla has cut prices for its Model 3 by 5.9 percent and its Model Y by 2.8 percent.
Deutsche Bank’s Emmanuel Rosner said in a note to clients: “While NEVs [New Energy Vehicles, such as EVs and plug-ins] specifically were up 39.6% YoY and up 7.4% [week over week for March 17].
“Tesla was down 35% YoY and down 8% WoW.”
Sam Fiorani of AutoForecast Solutions told Yahoo Finance: “Tesla’s Shanghai plant, at its peak, was producing at a rate of more than 1 million units a year and the local market couldn’t absorb all of that.
“Exports took up some of the excess, but reducing output by as much as 20% will help to align supply and demand.”
Doubts over Tesla’s future have also come after Musk said he would need a larger controlling stake in the company to make it an AI heavyweight.
He even warned he could explore building products outside of Tesla.
Musk posted on X: “I am uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control. Enough to be influential, but not so much that I can’t be overturned.
“Unless that is the case, I would prefer to build products outside of Tesla.”
Tesla’s stocks too a hit after the comments.

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