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Tesla’s Stock Price Craters 11% After Elon Musk Forecasts ‘Notably Lower’ Growth in 2024

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Tesla, led by Elon Musk, experienced a significant drop in stock value due to weak earnings and a forecast of reduced sales growth in 2024.

The company’s operating margin fell, reflecting Musk’s strategy of cutting prices to attract buyers.

Despite a rise in net income, Tesla warned investors of lower vehicle volume growth and the challenges of launching a next-generation vehicle.

Analysts believe that Tesla’s previous high growth rates are unlikely to be sustained in 2024, especially as consumer interest in electric vehicles appears to be waning.

Morningstar analyst Seth Goldstein said, “Tesla is signaling that the days of 50% or even 30% to 40% growth year-over-year is not going to happen in 2024. At a certain point, you can’t cut prices anymore.”

Musk is banking on a more affordable EV to drive future growth, but the company’s challenges in achieving substantial EV sales growth are evident.

Musk recently said, “That will be a challenging production ramp. Once it’s going, it will be head and shoulders above any other manufacturing technology that exists anywhere in the world. It’s next-level.”

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