Thursday, May 30, 2024
HomeNewsBig shock to Elon Musk before his visit to India, Rs 24...

Big shock to Elon Musk before his visit to India, Rs 24 lakh crore lost

There has been a continuous decline in Tesla’s share price in 2024. The primary reason behind this is the announcement of job cuts, alongside a decrease in production and sales. As a result of the falling shares, the company’s market capitalization has dropped below 500 billion dollars.

Elon Musk is set to make his first visit to India, where he will announce significant developments related to Satcom and Tesla. However, before this, Elon Musk, the world’s third-richest businessman, has faced a significant setback. The setback amounts to over Rs 24 lakh crore. Tesla’s shares have plummeted by 37 percent this year, causing the company’s market capitalization to dip below 500 billion dollars. On Tuesday, Tesla’s shares hit a low of $153.75 before closing at $157.11, marking a 2.7 percent decline.

This year alone, Tesla shares have witnessed a 37 percent decline, making it the second-largest drop on the S&P 500 index in 2024. Consequently, investors have lost over 290 billion dollars, or 24 lakh crore rupees. This is the first time since April last year that Tesla’s market capitalization has fallen below $500 billion.

The decline in Tesla’s shares is attributed to layoffs and reduced production capacity, raising concerns about the company’s growth prospects. According to JP Morgan, the decrease in Tesla’s car deliveries is due to a lack of demand rather than any other factor. Tesla faced challenges in October last year when it warned of slowing demand for electric vehicles (EVs). This slowdown was evident in the March quarter results, which showed significantly lower sales figures. Reports also emerged suggesting that Tesla postponed plans to develop affordable EVs in favor of robotaxis. Investors reacted negatively to this news.

RELATED ARTICLES

Most Popular