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Tesla's 2024: $94B market dip, global challenges, and Musk's wealth shrinks, facing Jeff Bezos' ascent to the top.
Tesla Inc., after a stellar performance in 2023, is grappling with a turbulent start to 2024, witnessing a staggering loss of over $94 billion in market valuation within the first two weeks. The electric vehicle giant, led by CEO Elon Musk, is encountering a series of challenges, including setbacks in China, labour cost concerns, and a slowing demand for EVs in the US.
Tesla's distress began with a surprising shift in the strategy from Hertz Global Holdings Inc., a major car rental player, causing a ripple effect on the EV manufacturer's market perception. Additionally, Tesla's decision to implement another round of price cuts on its Chinese-made cars has also intensified concerns, triggering what the analysts describe as a "race to the bottom" in the highly competitive Chinese EV market.
Investors' primary apprehension revolves around Tesla's apparent stagnation in growth, fueled by the aggressive price cuts and the signs of escalating labour costs. The EV industry is experiencing a cyclical downturn, but competitive dynamics are worsening these challenges, leading to dropping margins and increased concerns among the stakeholders.
Tesla's market capitalization witnessed the most significant drop since its IPO in 2010, with a 12% decline in the first two weeks of January 2024. This percentage drop is the most substantial since 2016, reflecting a challenging start to the year for the electric vehicle pioneer.
Tesla's aggressive approach to cutting prices since early 2023 to stimulate demand has resulted in a gradual erosion of its once-substantial profit margin. The automotive gross margin, excluding regulatory credits, fell from 27.9% to 16.3% in the third quarter of the previous year, signaling a concerning trend for the company.
Logistical hurdles, including rerouting shipments due to military actions and security concerns in the Red Sea, have further hampered Tesla's operations. The suspension of most production at its Berlin plant adds to the challenges faced by the company, impacting its ability to meet demand efficiently.
Tesla's fourth-quarter delivery numbers, although better than expected, positioned the company behind China's BYD Co. in global electric-car sales. This shift has served as a rude awakening for investors, turning Tesla from last year's eighth-best S&P 500 performer to the eighth-worst in the early days of 2024.
Also Read: Can Smartphone Brands Compete with Tesla in making Autonomous/Electric Cars?
Elon Musk, the world's richest person, has seen a personal setback, with a 3 billion reduction in his net worth in the first weeks of 2024. As Jeff Bezos threatens to dethrone Musk from the top spot, Tesla faces a challenging road ahead. Despite current challenges, Tesla remains a pivotal player in the global shift towards electric vehicles, banking on its lead over potential rivals.
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2024 Jeep Wrangler: Updated Lifestyle SUV Makes India Debut; Check Price and Other Details
The 2024 Jeep Wrangler receives significant updates in styling, including a sleeker grille and a sturdy Gorilla Glass windshield. It now competes with rivals like the Range Rover Velar and BMW X3. Offering various roof styles and alloy wheel options, it addresses previous feature shortcomings with a larger touchscreen, digital console, and advanced ADAS suite. Starting at Rs. 67.65 lakh, it promises adventure with style.
25-Apr-2024 12:34 PM
Read Full News2024 Jeep Wrangler: Updated Lifestyle SUV Makes India Debut; Check Price and Other Details
The 2024 Jeep Wrangler receives significant updates in styling, including a sleeker grille and a sturdy Gorilla Glass windshield. It now competes with rivals like the Range Rover Velar and BMW X3. Offering various roof styles and alloy wheel options, it addresses previous feature shortcomings with a larger touchscreen, digital console, and advanced ADAS suite. Starting at Rs. 67.65 lakh, it promises adventure with style.
25-Apr-2024 12:34 PM
Read Full NewsBajaj Ventures into Hydrogen-Powered Two-Wheelers with Chetak Brand
Bajaj ventures into hydrogen-powered two-wheelers with Chetak brand, aiming to pioneer India's first hydrogen engine model, marking a strategic leap in sustainable automotive innovation.
25-Apr-2024 10:08 AM
Read Full NewsBajaj Ventures into Hydrogen-Powered Two-Wheelers with Chetak Brand
Bajaj ventures into hydrogen-powered two-wheelers with Chetak brand, aiming to pioneer India's first hydrogen engine model, marking a strategic leap in sustainable automotive innovation.
25-Apr-2024 10:08 AM
Read Full NewsBrixton Motorcycles Plans to Enter Indian Market with a Production Plant & Four Bike Models
Brixton Motorcycles partners with KAW Veloce Motors to launch in India, introducing a production plant and four models. They aim for nationwide reach and innovation in the dynamic two-wheeler market.
25-Apr-2024 07:33 AM
Read Full NewsBrixton Motorcycles Plans to Enter Indian Market with a Production Plant & Four Bike Models
Brixton Motorcycles partners with KAW Veloce Motors to launch in India, introducing a production plant and four models. They aim for nationwide reach and innovation in the dynamic two-wheeler market.
25-Apr-2024 07:33 AM
Read Full NewsLamborghini Urus SE Unveiled at Beijing Motor Show; More Power With New Plug-in Hybrid System; Details
The Lamborghini Urus SE, showcased at the Beijing Motor Show 2024, epitomizes performance and innovation in the realm of hybrid SUVs. Combining a potent 4.0-liter V8 engine with a hybrid powertrain, it delivers 800 hp and 950 Nm of torque. With an impressive electric range of 60 km, aggressive exterior upgrades, and luxurious interior enhancements, the Urus SE redefines expectations in both performance and luxury.
25-Apr-2024 07:18 AM
Read Full NewsLamborghini Urus SE Unveiled at Beijing Motor Show; More Power With New Plug-in Hybrid System; Details
The Lamborghini Urus SE, showcased at the Beijing Motor Show 2024, epitomizes performance and innovation in the realm of hybrid SUVs. Combining a potent 4.0-liter V8 engine with a hybrid powertrain, it delivers 800 hp and 950 Nm of torque. With an impressive electric range of 60 km, aggressive exterior upgrades, and luxurious interior enhancements, the Urus SE redefines expectations in both performance and luxury.
25-Apr-2024 07:18 AM
Read Full News2024 Jawa Perak has Launched at Rs 2.13 Lakh in New Delhi
The 2024 Jawa Perak, priced at Rs 2.13 lakh in New Delhi, boasts refined gear mechanism, revamped suspension, and optimized engine for enhanced performance.
25-Apr-2024 06:27 AM
Read Full News2024 Jawa Perak has Launched at Rs 2.13 Lakh in New Delhi
The 2024 Jawa Perak, priced at Rs 2.13 lakh in New Delhi, boasts refined gear mechanism, revamped suspension, and optimized engine for enhanced performance.
25-Apr-2024 06:27 AM
Read Full News2024 Mercedes G580: First Electric G-Class Globally Revealed; Gets a Big 116 kWh Battery Pack; Check Details
Mercedes introduces the all-new electric Mercedes Benz G 580, marking a shift towards sustainable mobility. Retaining its iconic design, the SUV boasts minor aerodynamic enhancements. Powered by a 116-kWh battery, it delivers impressive performance, surpassing its ICE counterpart. With off-road capabilities and advanced features, including fast charging, the G580 sets a new standard in luxury electric SUVs. Price details are yet to be disclosed.
24-Apr-2024 07:04 PM
Read Full News2024 Mercedes G580: First Electric G-Class Globally Revealed; Gets a Big 116 kWh Battery Pack; Check Details
Mercedes introduces the all-new electric Mercedes Benz G 580, marking a shift towards sustainable mobility. Retaining its iconic design, the SUV boasts minor aerodynamic enhancements. Powered by a 116-kWh battery, it delivers impressive performance, surpassing its ICE counterpart. With off-road capabilities and advanced features, including fast charging, the G580 sets a new standard in luxury electric SUVs. Price details are yet to be disclosed.
24-Apr-2024 07:04 PM
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