Hard times for Tesla: in two weeks of 2024, the company lost almost $100 billion in capitalization
Elon Musk’s car company lost almost $100 billion in capitalization in two weeks of 2024. This is the worst start to the year for Tesla since it went public in 2010, Bloomberg reports.
Since January 1, the company’s shares have fallen by 12% due to reports of plans by Hertz Global Holdings, one of the leaders in the US car rental market, to abandon electric cars, lower prices for Tesla cars in China, and higher labor costs.
The main concern of Tesla investors is the stagnation of the company’s growth in the electric vehicle market, Cowen analyst Jeffrey Osborne told Bloomberg.
According to him, the decline in electric car prices in China exacerbates these fears, as it already looks like “a race to the bottom for the EV industry given the fierce competition in this market.”
The fall in Tesla shares has affected Musk’s personal wealth.
According to the Bloomberg Billionaires Index, he has lost $23 billion since the beginning of the year.
