Tesla's Market Value Dips From $1 Trillion to Below $500 Billion After Elon Musk's Global Layoffs Memo

By Thea Felicity

Apr 16, 2024 02:17 PM EDT

Detroit Hosts Flagship North American International Auto Show
DETROIT - JANUARY 12: Elon Musk, Chairman, Product Architect and CEO, Tesla Motors, talks about the Model S electric vehicle during the press preview for the world automotive press at North American International Auto Show in Cobo Center January 12, 2010 in Detroit, Michigan. The 2010 North American International Auto Show (NAIAS) opens to the public January 16th.
(Photo : Bryan Mitchell/Getty Images)

Tesla Inc. faces a decline in its market value below $500 billion, from $1 trillion, as its shares continue to drop in 2024, according to Yahoo Finance.

Earlier reports from VCPost show that it was worsened by a round of 10% global workforce layoffs Elon Musk sent via memo, which, in turn, has heightened concerns among investors about the company's future prospects. 

READ NEXT: Tesla Stock Plummets Following Elon Musk's Memo Announcing 10% Global Workforce Layoff

In detail, the stock plummeted by about 4% to below $154 on Tuesday, Apr. 16, in New York, marking a 38% drop for the year. Tesla's struggles began in October when it signaled a slowdown in demand for electric vehicles (EVs), a trend accentuated by disappointing first-quarter sales reported this month. 

Analysts attribute Tesla's decline in value to lower demand rather than supply issues, highlighting the challenge the company faces in maintaining its position in the EV market. Elon Musk had to resort to advertising despite hating it to compete with rising Chinese EV companies, Xiaomi in particular.

At the moment, there are ambitions in self-driving technology for Tesla. However, analysts stress the importance of producing affordable EVs to sustain growth in the short term. With Tesla set to report its first-quarter results on April 23, investors await clarity on the company's strategic approach amidst mounting uncertainties on its global direction.

READ MORE: Tesla Spends Millions in Advertising Despite Elon Musk Hating It, But Why?

© 2024 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics