Q3 Earnings Alert! Plan early for this week’s stock reports with all key data in 1 placeSee list

Tesla's bumpy ride, captured in five charts

Published 2024/04/05, 17:45
Updated 2024/04/05, 17:51
© Reuters. FILE PHOTO: The logo of Tesla on display at the Everything Electric exhibition at the ExCeL London international exhibition and convention centre in London, Britain, March 28, 2024.  REUTERS/Peter Cziborra/File Photo
US500
-
TSLA
-
VOWG_p
-
7201
-
7267
-
7203
-
P911_p
-

(Reuters) - Tesla (NASDAQ:TSLA)'s reported move to scrap plans for a low-cost car marks the latest disappointment for investors who have dumped shares of the automaker this year on worries over slowing demand, an aging vehicle line-up and rising Chinese competition.

Reuters reported earlier on Friday that Tesla has canceled the long-promised inexpensive car but will continue developing self-driving robotaxis on the same small-vehicle platform.

Shares of the electric-vehicle maker fell 4.7% on the news. They were already down nearly 32% this year, as of last close, making them among the worst performers on the S&P 500 index.

Here are five charts on Tesla's rocky ride in 2024:

MAGNIFICENT SEVEN LAGGARD

This year's slump in Tesla stock has threatened its place in an elite grouping of companies that powered a surge in U.S. markets in recent years, several market experts have said.

The so-called "Magnificent Seven" consists of Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon.com (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), Nvidia (NASDAQ:NVDA) and Tesla.

But Tesla is no longer looking so magnificent, and some analysts say AI-linked names such as Advanced Micro Devices (NASDAQ:AMD) or Broadcom (NASDAQ:AVGO) might be more appropriate as part of that group of big market gainers.

SINKING MARKET VALUE

Tesla has lost more than $250 billion in market value this year. While it remains the world's most valuable automaker, Toyota Motor (TYO:7203) is slowly narrowing the gap as the Japanese company rides a boom in demand for hybrid vehicles.

Toyota's shares have risen nearly 40% this year, pushing its market value up by around $80 billion. But some analysts have warned Toyota remains a laggard in pure battery EVs, which are widely viewed as the long-term future of the auto industry.

At its peak in late 2021, Tesla's market cap surpassed more than $1 trillion in value, but the stock has lost more than half its value since then.

DELIVERIES SLUMP

Tesla posted a decline in quarterly deliveries for the first time since the second quarter of 2020, when the COVID-19 pandemic shut down a significant amount of production at its factories.

Analysts have said that the effects of Tesla's margin-sapping price cuts to boost demand have been waning with the company producing many more vehicles than it is handing over to customers.

GLOBAL AUTOMAKERS SALES TOWER TESLA'S

Automakers such as Volkswagen (ETR:VOWG_p), Toyota and Honda sold far more vehicles than Tesla in 2023, yet the EV maker's market capitalization eclipses that of Toyota, Mercedes-Benz and Porsche (ETR:P911_p) combined.

MUSK'S PERSONA POLARIZES WOULD-BE BUYERS

The number of would-be Tesla buyers in the U.S. is shrinking, according to a survey by market intelligence firm Caliber, which attributed the drop in part to CEO Elon Musk's polarizing persona.

© Reuters. FILE PHOTO: The logo of Tesla on display at the Everything Electric exhibition at the ExCeL London international exhibition and convention centre in London, Britain, March 28, 2024.  REUTERS/Peter Cziborra/File Photo

Caliber's "consideration score" for Tesla fell to 31% in February, less than half its high of 70% in November 2021 when it started tracking consumer interest in the brand.

Reuters spoke to five marketing, polling and car experts who said controversies surrounding Musk's increasingly right-wing politics and public statements are weighing on Tesla's brand and demand.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.