Tesla Stock Tumbles 12% Amid Earnings Miss and 2024 Slowdown Warning: Key Insights and Market Impact

Tesla Stock Tumbles 12% Amid Earnings Miss and 2024 Slowdown Warning: Key Insights and Market Impact. Tesla’s stock plunged 12% on Thursday, marking the sharpest decline in over a year, following the company’s earnings report that fell short of expectations and a warning of potential slowdowns in 2024. Although the stock almost experienced its most significant drop since 2020, it narrowly avoided this at the close.

The company reported lower-than-expected revenue and earnings on Wednesday. Tesla’s automotive revenue, a key figure, reached $21.6 billion in Q4 of 2023, only a 1% increase from the previous year. A major concern arose from Tesla’s future outlook. The automaker indicated that its vehicle volume growth in 2024 might be substantially lower than last year’s rate, as it focuses on launching a new vehicle in Texas. The company noted it is in a transitional phase between major growth periods.

Short sellers reaped over $2 billion in profits from Tesla’s stock since Wednesday, as reported by Ortex Media. The stock’s value has now decreased by 27% this year, following a more than 100% increase in 2023.

Tesla Stock Tumbles 12% Amid Earnings Miss and 2024 Slowdown Warning: Key Insights and Market Impact

In 2023, Tesla delivered 1.8 million cars. The company has been reducing prices in key markets across Europe and China, contending with increasing competition from Chinese companies like BYD and traditional automakers. These price cuts have impacted Tesla’s profit margins.

Further impacting Tesla’s stock, several brokers have lowered their price targets for Tesla. Barclays reduced its target from $250 to $225, with analysts commenting on the uncertain future and associated risks. RBC analysts adjusted their target from $300 to $297, while Canaccord Genuity decreased their target to $234 from $267.

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About the Author: Bernard Aybout

In the land of bytes and bits, a father of three sits, With a heart for tech and coding kits, in IT he never quits. At Magna's door, he took his stance, in Canada's wide expanse, At Karmax Heavy Stamping - Cosma's dance, he gave his career a chance. With a passion deep for teaching code, to the young minds he showed, The path where digital seeds are sowed, in critical thinking mode. But alas, not all was bright and fair, at Magna's lair, oh despair, Harassment, intimidation, a chilling air, made the workplace hard to bear. Management's maze and morale's dip, made our hero's spirit flip, In a demoralizing grip, his well-being began to slip. So he bid adieu to Magna's scene, from the division not so serene, Yet in tech, his interest keen, continues to inspire and convene.