Tesla reportedly lost $94 billion market value in early January

Tesla has lost over $94 billion in market valuation in the first two weeks of 2024, reveals figures from Bloomberg.

The electric vehicle (EV) maker is facing this new reality check after several negative news from the market including competition in China and decreasing EV demand.

The latest market capitalization decline is the biggest to open a year since 2010. Also, it’s the largest 12% decline in the opening of the year since 2016 when the stock declined almost 14% in the first nine trading days of that year.

Analysts believe that the continued price cuts are also affecting Tesla’s market growth. In that past week, Tesla also announced it temporarily paused production at its Berlin plant due to Red Sea attacks. This action may also add more issues for production and supplies.

Ivana Delevska, chief investment officer at Spear Invest told Bloomberg that it is a cylindrical downturn for EVs but competitive dynamics are adding to the cyclical pressure. Price cutting and declining margins are the result of these adverse competitive dynamics”.

Earlier this year, Tesla shared a report on vehicle production and deliveries for the past year. The company shared it produced 495,000 vehicles and delivered 484,000 vehicles in Q4 2023. Throughout the year, the company recorded about 1.81 million vehicles with 38% year-over-year growth.

Tesla will host a live earning call on January 24 at 4:30 p.m. Central Time and 5:30 p.m. Eastern Time.