Tesla Inc. has seen a tumultuous start to 2024 following a great 2023 with skyrocketing shares. The company’s market value has plummeted by over $94 billion within the initial fortnight of the year. This downturn, the most substantial since the company’s inception in 2010, is the result of a series of adverse events.
The bad news for the EV maker is that Hertz Global Holdings Inc., the giant in auto rentals, has changed its position on EVs. There have also been further price cuts for the company’s Chinese-made cars, and there are signs that labour costs are rising. Due to these reasons, Tesla’s value has dropped by 12% since January 1st, making this the most difficult start to a year since 2016.
In addition to these challenges, Tesla is coping with a decline in the market for electric vehicles, especially in the US. Even though the corporation has been lowering the prices of its cars dramatically since the beginning of 2023 in an effort to increase demand, its profit margin has been steadily declining. Excluding regulatory credits, the automotive gross margin fell to 16.3% in the third quarter from 27.9% in the same period last year.
These problems have been made worse by Tesla’s experience with supply chain disruptions brought on by Red Sea security concerns, which have required the rerouting of cargo meant for its Berlin factory. Furthermore, from January 29 to February 11, most of the Berlin plant’s output was suspended.
The Tesla Wall Connector is a Level 2 EV charger compatible with all Tesla models and is available on Amazon for $475. It offers up to 48A of charging power.