Tesla stumbles in AI boom: stock value dips by 30%

While other AI companies stock prices are soaring, Elon Musk’s Tesla is having a rough start in 2024. The world’s most valuable car producer company has missed sales expectations and lost hundreds of billions of dollars in stock value in Q1.

According to data presented by AltIndex.com, Tesla is the only loser among AI giants in 2024, with its stock value plunging by 30% year-to-date.

Unlike NVIDIA, Microsoft, Alphabet, and Meta Platforms, which continued adding trillions of dollars to their stock values amid the AI renaissance, Tesla, has seen a severe plunge in sales and stock price.

The once red-hot company, previously a member of the prestigious “Magnificent Seven” tech stocks, now holds the dubious distinction of being the worst performer in the S&P 500.

Several factors have contributed to this dramatic fall: slowing growth, safety concerns leading to recalls, price cuts, and missed sales targets. The combined effect has been a dramatic drop in Tesla’s stock price, wiping away hundreds of billions of dollars in market value within just three months.

Tesla’s market cap has been observed up-and-down trend over the past year. From $586 billion in April 2023, it climbed to $814 billion a month later, only to dip back down to $525 billion in May. This trend continued throughout the year, with the company adding and losing billions in value. Despite the volatility, Tesla managed to close December 2023 at a market cap of $831 billion.

However, starting from 2024 it was a downhill from. By January’s end, the company’s stock value had plummeted to $583 billion, representing a massive 28% drop in a single month. While the market cap reached a temporary high of $643 billion in February, it has been on a downward trajectory ever since. Last week, the combined value of Tesla shares stood at $550.9 billion, signifying a staggering $250 billion loss since the year began.

According to the alternative data platform AltIndex, which analyzes millions of data signals from thousands of publicly traded companies to forecast future price movements and overall company performance, investors should approach buying Tesla (TSLA) stocks with caution.

Based on its social media mentions, financial results, and neutral sentiment across popular stock forums, the AltIndex algorithm currently marks TSLA with a hold signal.

The full story and statistics can be found here: 

https://altindex.com/news/tesla-ai-stock-drop