Tesla trails top US tech shares

In contrast to last year’s impressive average gain of 112% for the ‘Magnificent 7’ stocks, Tesla has notably underperformed in 2024 with a 30% drop in its stock value since New Year’s. Despite releasing nearly 387,000 new cars in the first quarter, market expectations were higher. Philip Jagd of Sampension attributes the decline to Tesla’s inability to meet high revenue growth expectations. Rising competition in the EV market, particularly from China and Europe, has led Tesla to reduce prices, impacting earnings. The future appears uncertain for Tesla; a Reuters report suggesting the cancellation of the budget Model 2 was countered by Elon Musk announcing a robo-taxi event set for August 8, which momentarily lifted Tesla’s stock by 5%. However, the long-term effect remains questionable. Tesla’s full-year 2023 financial report is scheduled for release on April 23.