Tesla Stock Drops to An All-Time Low Of -29% in 2024 First Quarter Due to Increasing Chinese Competitors

By Thea Felicity

Mar 29, 2024 11:39 AM EDT

Tesla co-founder and CEO Elon Musk speaks in front of the newly unveiled all-electric battery-powered Tesla's Cybertruck with shattered windows, after a failed resistance test, at Tesla Design Center in Hawthorne, California on November 21, 2019.
(Photo : Photo by FREDERIC J. BROWN/AFP via Getty Images)

Tesla's stock value experienced a dramatic 29% plunge in the first quarter of 2024. According to CNBC, this downturn represents one of the most challenging periods for the company since the close of 2022. 

With all eyes on Tesla, analysts were eagerly waiting for the company's first-quarter delivery numbers, which were expected to be around 457,000 vehicles based on estimates from 11 analysts. 

Although this forecast showed an 8% increase from the previous year, some analysts were skeptical and lowered their expectations due to possible challenges faced by Tesla. Independent researcher Troy Teslike even predicted that Tesla's deliveries could fall below the most cautious estimates, hinting at a tough quarter ahead for the electric car company.

READ NEXT: China's Xiaomi, Tesla's New Rival, to Begin Deliveries of Its First EV Model This Month

Why Tesla's Stock Fell Down in 2024 First Quarter

Now, the big fall in Tesla's stock price is concerning to investors since the EV company is facing tougher competition from new Chinese competitors, as reported by VCPost, and has had problems in important European markets.

BYD, a Chinese company, became a major rival by surpassing Tesla as the world's top electric vehicle maker by the end of 2023. 

In the first quarter of 2024, BYD introduced new models like the Qin Plus EV and BYD Seagull, offering attractive alternatives to Tesla's cars at lower prices. Despite Tesla cutting prices to compete, sales in China didn't pick up, leading the company to reduce production at its Shanghai factory and rethink its regional approach.

In Europe, Tesla has several disruptions in the supply chain due to attacks on shippers in the Red Sea and clashes with activists near its manufacturing sites. These disruptions led to halting production activities, worsening Tesla's situation and casting doubt on its operational effectiveness and future prospects. 

Moreover, environmental protests in Germany increased the tensions between Tesla and local communities, revealing the challenges of meeting both regulatory and societal demands in foreign markets.

Tesla has yet to release a statement regarding their stock downfall.

READ MORE: Elon Musk Has Special Privileges in China; Ex-Tesla Employees Reveal What Billionaire Receives

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