Tesla’s CEO Elon Musk Reacts to Disappointing Earnings and Warns of 2024 Slowdown

LONDON – Tesla’s shares took a hit in pre-market trade on Thursday following disappointing earnings and a warning of a slowdown in 2024. The electric car company reported results that fell short of market expectations, contributing to an approximately 8% drop in Tesla’s stock.

In its latest financial report, Tesla revealed that its automotive revenue for the fourth quarter of 2023 reached $21.6 billion, a modest 1% increase compared to the previous year. However, the main concern came from the company’s outlook for 2024. Tesla stated that its vehicle volume growth could be significantly lower than in previous years as it focuses on the launch of its “next-generation vehicle” in Texas. The company cautioned investors, saying it is currently navigating between two major growth waves.

To counter growing competition from Chinese players like BYD and traditional automakers, Tesla has been cutting prices in key markets across Europe and China. These price reductions have impacted the company’s margin. In response to Tesla’s latest earnings report, various brokerage firms have reduced their price targets for the company. Barclays, for example, lowered its price target from $250 to $225, while RBC analysts decreased their target from $300 to $297. Canaccord Genuity also adjusted its target to $234 from $267.

As Tesla faces scrutiny and uncertainty, investors and analysts alike will be closely monitoring the company’s strategic moves and its ability to maintain growth in the competitive electric vehicle market.

(Note: The information in this article is based on publicly available sources and does not mention any specific news organization.)