Tesla: the electric car manufacturer violently sanctioned by the stock market

Samir Rahmoune

January 26, 2024 at 2:22 p.m.


Elon Musk Tesla © © Rokas Tenys / Unsplash

Elon Musk’s face, preceded by the Tesla logo © Rokas Tenys / Unsplash

Tesla recorded results that disappointed the markets. This had the consequence of hurting the stock listed on the stock exchange, which fell sharply.

The world leader in electric vehicles has just presented its results for the fourth quarter of 2023. However, if the company still benefits from growth in its sales, thanks to an ever more aggressive pricing policy, this strategy has also cut into Tesla margins. This was not very well received by the market, the recent downward trend in its shares having suddenly increased this Thursday, January 25.

The announcement of falling sales in 2024 goes badly

Tesla is not the favorite of the financial markets these days. The action of Elon Musk’s group indeed suffered an extremely sharp fall yesterday, a fall of 12% which caused its price to drop from 207.83 to 182.63 dollars in 24 hours. This means that 80 billion dollars of capitalization evaporated on this occasion.

Net profit, once an exceptional tax benefit (of $5.9 billion) was subtracted, stood at $2.48 billion, while analysts expected it at $2.69 billion. The other shock was Elon Musk’s announcement of an upcoming slowdown in sales in 2024, with growth during this period expected to be ” noticeably lower. »

Elon Musk © MeSSrro / Shutterstock.com

Tesla is disappointing at the moment © MeSSrro / Shutterstock.com

Pitfalls for Elon Musk’s rise in capital?

Tesla will in fact this year focus on the development of an entry-level vehicle, the price of which will significantly increase sales during the decade, and which will be assembled in the Texas factory in the second half of 2025.

It should also be noted that this fall is also a continuation of a drop in the share price over the past month. In mid-January, Elon Musk also expressed his desire to double his stake in the company’s capital. A desire which apparently is not welcomed by the markets either. Will he be able to implement his plan with such a drop in the share price?

Source : Reuters

Source link -99