Since the beginning of 2024, the market capitalization of the American electric car manufacturer “Tesla” has suffered huge losses, amounting to about 188 billion dollars since the beginning of 2024.
Tesla shares closed trading at the end of the past week at the level of 191.9 dollars, after opening the year at the level of 248.4 dollars per share, which means that the stock lost about 56.5 dollars, since the beginning of the year by 23%, this comes amid investor concern and anticipation about the Chinese economy, and the possibility of a slowdown in sales of electric cars globally.
The Chinese company BYD BYD had ousted the American company Tesla from the throne of the largest producer of electric cars in the world, by the end of 2023, according to the American CNBC network.
The forecasts of the US bank JPMorgan indicated that Tesla, run by American billionaire Elon Musk, the richest man in the world, will face bearish risks, due to the company’s strategy, which is based on reducing car prices, and the bank said that these cuts will erode profits.
“Musk” owns a stake of about 21% of Tesla shares, which increases his losses that exceeded 21 billion dollars since the beginning of the year, and the wealth of the richest man in the world amounted to about 208 billion dollars.
Despite the huge losses suffered by the global electric car maker since the beginning of 2024, Tesla’s shares are almost 900% higher compared to the stock’s levels 5 years ago.
Tesla’s expansion plans in gronheide, located in the Brandenburg region an hour’s drive from Berlin, included designs for a rail freight warehouse and storage facilities that could help Tesla avoid relying on other logistics providers including existing freight railroads and help them avoid production pauses due to parts shortages.
”There is no impact on any future expansion plans, we fully respect the referendum,”said Rohan Patel, Tesla’s vice president of Public Policy. He stressed that Tesla plans to”double our work with the community and all stakeholders”.
And in the last quarter of 2023, Tesla reported that this facility, which it refers to by its location in Berlin-Brandenburg, has an annual production capacity of 375 thousand Model Y cars of the company.
Sales of new battery-powered electric cars increased by 29% in January year-on-year in Europe, according to the European Automobile Manufacturers Association. Germany and France currently represent the two largest all-electric vehicle markets in Europe.
Tesla’s sales accounted for 1.7% of the total car market in Europe in January, including all-electric, hybrid and internal combustion engine models.
Source: agencies
