The company founded by Elon Musk has lost the shine it had in 2021 when it was able to exceed $1 trillion in market capitalization. With the markets practically at historical highs, the company has lost 600,000 million dollars and in addition the problems of some of its models are wreaking havoc on the company’s accounts. For example, the Tesla Model 3 Highland is the subject of strong criticism for vibrations that drivers notice when they are driving.
Tesla shares are in the doldrums and have accumulated a loss of 35% so far in 2024. Surprisingly, the electric vehicle company is the worst company in the Standard & Poor’s 500, a benchmark index in the United States to know the state of health from the bag. What’s going on?
Goodbye to the billion dollar club
On this day four years ago, Tesla shares were trading around $28 (before performing the split, a formula Tesla used to increase the number of shares and maintain value). With the recovery of the markets, the company managed to multiply its value by eleven in just a year and a half and reach historical highs in November 2021 with shares above $400. Elon Musk’s jewel capitalized more than all the motor companies combined and there was nothing to suggest that precisely that date was going to be the beginning of its decline in the markets. Since that moment the firm has lost 60% of its stock market value and the latest news does not invite optimism. On the one hand, sales are suffering, especially in China, and Tesla has been forced to lower prices and thus narrow its margins. On the other hand, the problems of some of its models are beginning to exhaust the patience of “Tesla fans.” The third factor that causes a perfect storm is that competitors, especially Chinese, are beginning to sell their electric vehicles like hotcakes.
The market always looks to the future and at the moment investors are turning their backs on Tesla because there are many doubts regarding the firm’s ability to maintain its sales rate without having to reduce its prices. In 2023 it was the leader in electric sales but, in the last quarter of the year it disappointed investors as it sold 484,000 units while its Chinese rival Byd sold 526,000 electric vehicles. Furthermore, Tesla has already warned that it will reduce production in 2024, which does not encourage optimism in the coming months.
Strange vibrations in the Tesla Model 3 Highland
Hundreds of owners are returning their brand new electric vehicles in countries like Spain, Portugal, France or Germany because the car vibrates and there is no official explanation from the company. Apparently, when the Model 3 Highland exceeds 100 kilometers per hour, drivers notice an unpleasant vibration that prevents driving from being pleasant. The main obstacle is that the firm is not providing solutions and its team of engineers has not yet found the problem. So much so that there are already Telegram groups with affected people who are grouping together to take legal measures against the American company.
The company has not yet made any official statement but the truth is that it is carrying out a multitude of tests to find out the problem. For example, it has changed the tires of some of its clients for free, in Germany it is replacing the springs and shock absorbers and is also carrying out balancing for all drivers who pass through the technical center. Bad news for a car that showed signs of success but is leaving a very bad taste in the mouths of those who opted for the American firm.
