Tesla’s Stock Price Continues to Drop as the Company Struggles in 2024

From a drop in share prices to accusations of blackmailing investors, Tesla has experienced several setbacks in the first few months of the new year.

This was the lowest the price had fallen to in over a year. In the wake of the drop, experts have suggested 2024 could be a slow year for Musk and Tesla. 

Tesla argues that this is due to focusing on its “next-generation vehicles” before explaining to stockholders that it is “currently between two major growth waves.”

Speaking on the situation, a Barclays analyst wrote, “Not as bad as feared, but a cloudy path ahead reinforces some downside risk for now” (via CNBC).

At the beginning of March, the Tesla CEO claimed he was “uncomfortable” with the company’s engagement in robotics and AI if he didn’t have “25 percent voting control.”

Musk wrote, “Enough to be influential, but not so much that I can’t be overturned.”

The company’s CEO threatened to work on AI projects “outside of Tesla” should he not receive what he had requested. 

Speaking with CNBC, Tesla investor Ross Gerber said, “Now he seems to be blackmailing the Tesla shareholders, saying he won’t build stuff for us unless he gets another $30 billion.”

“Where in the world does paying a CEO $30 billion make any logical sense in the modern world, who already has a $150 billion stake in the company?” he said.

“The idea that he doesn’t control Tesla when everybody on the board is a friend or family member of his is the part I’m really pushing back on,” he said.

Best estimates suggest the budget vehicle will not hit the market until late 2025, further testing shareholders’ patience.

Many owners of the highly anticipated truck were disappointed with its lackluster performance, per UNILAD.

This led to an 8% decrease when compared to year-on-year sales, a figure much less than anticipated by experts. 

Dan Ives, an analyst for Wedbush Securities, described the lower figures as an “unmitigated disaster that is hard to explain away.”

This leaves the company as one of the worst performers on the S&P 500 in 2024. 

Meanwhile, disturbances in the Red Sea have also led to a shortage of components, further halting factory work. 

“This is a fork in the road time to get Tesla through this turbulent period; otherwise, troubling days could be ahead,” he said.

While this could be the case for Tesla’s weaker-than-average sales, the company is evidently facing a plethora of personal problems. One further problem is centered on its driverless car software. 

However, many safety experts have suggested problems lie in the power steering and other aspects of the software. 

Now, investors have begun questioning whether projects like the driverless software and the next-generation vehicles will really bring Tesla back to glory. 

The investor believes the SpaceX founder’s “toxic behavior” has absolutely damaged the brand.”

The Tesla CEO also noted that it was a “tough quarter” for all major EV companies.

The EV company, backed by investor Warren Buffet, has appealed to many citizens in Asia and Europe thanks to their lower prices. 

One thing is for sure: If the CEO can’t find common ground with the investors, further problems may await the company later in the year.