Tesla shares have plummeted 30% since their all-time high in December, with a $106 billion drop in Elon Musk’s wealth due to the decline. Critics blame Musk’s new role in the White House for the woes, citing recent reports of lackluster sales in some regions. However, supporters argue that Tesla is facing growing pains from stiff competition in electric vehicles and pursuing new ventures like self-driving taxis.
Tesla has sold fewer cars in 2024 than the previous year, marking its first year-over-year sales decline in over a decade. The company promised a future revenue stream from autonomous taxis, but rival BYD unveiled advances in self-driving technology that could potentially disrupt Tesla’s plans.
Investors are divided on whether Musk’s government role is affecting the company’s performance. Some, like Gary Black, say the downturn is due to investor jitters about Tesla’s ability to dominate self-driving technology. Others, such as Nell Minow, blame Musk for being “absent” from the company and criticize the board for its failure to hold him accountable.
Despite the criticism, some investors remain bullish on Tesla, citing the company’s focus on real-world AI and ambitious projections. Musk has emphasized the need for perfection in his approach, saying he focuses where the challenges are greatest.
The decline in Tesla shares has also raised concerns about the impact of Musk’s government role on the company’s performance. While some investors see the president as a potential ally, others worry that Musk’s actions could harm the company. As the situation continues to unfold, one thing is clear: Tesla’s future will depend on its ability to navigate the challenges ahead.
Source: https://abcnews.go.com/Business/tesla-shares-plunged-musk-takes-washington-reason/story?id=118764267