Tesla's stock price continued to fall in 2024, pushing the e-vehicle maker's value below $500 billion, as the round of employee layoffs announced by the company this week further deteriorated morale.
The stock price fell approximately 4% to below $154 during Tuesday trading in New York, losing about 38% during the current year.
Tesla stock is the second-largest declining stock in the S&P 500 index in trading this year, with the company losing more than $290 billion in value since the end of the year. It should be noted that the company will not close with a market value below $500 billion since late April of last year.
The company's problems began in October when it warned that demand for electric vehicles was starting to slow, but the full extent of that weakness only became clear this month when Tesla reported first-quarter sales well below analysts' expectations. These numbers reignited investor concerns about the company's growth trajectory, and then came news that Tesla intends to scrap its plans to make a cheaper electric car and focus on building so-called robotaxis instead. Monday's announcement of widespread job cuts was the final blow.
Meantime, Musk even said the company's value will be "zero" unless it can solve the problem of self-driving cars.
Tesla announced earlier that it would cut around 15,000 jobs; under Musk's drive for productivity.
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