ALBAWABA - In a staggering turn of events, Tesla Inc. witnessed an $80 billion loss, equivalent to a 12% drop in its stock value, following a warning about the slowdown in electric car sales and the existential threat posed by Chinese competitors. The Tesla stock experienced its worst day in 21 months, closing at its lowest level since December 2022.
Since the beginning of 2024, the company's market capitalization has plummeted by $210 billion. In an earnings presentation, the world's most valuable car manufacturer admitted that its sales growth for the year may be "significantly lower" than the previous year as it continues to develop the "next-gen" car, likely to be a more affordable model.
While Tesla reported an impressive 38% surge in deliveries last year compared to 2022, the company had previously maintained an annual growth rate of 50% over several years.
The Threat from China
Facing intense competition in China, Tesla has been reducing prices for over a year in an attempt to boost sales. Chinese automaker BYD outperformed Tesla in the last three months of the previous year, outselling Elon Musk's car manufacturing giant for the first time.
During the call, Musk stated that Chinese car manufacturers are "the most competitive car companies in the world" and predicted their significant success outside China. He expressed concerns that without trade barriers, most other car companies worldwide could face destruction.
