Current:Home > ContactAs electric car sales slump, Tesla shares relinquish a year's worth of gains -MarketLink
As electric car sales slump, Tesla shares relinquish a year's worth of gains
View
Date:2025-04-15 12:06:05
Tesla shares on Thursday dipped below $150 a piece, relinquishing a year's worth of gains as the automaker struggles with decelerating electric vehicle sales and mounting competition.
Continuing a dismal year for Tesla investors, the stock on Thursday fell $5.52, or 3.5%, to close at $149.93, leaving shares down more than 39% this year. The stock last traded at the $150 level in January 2023.
Tesla sales plummeted last quarter as competition increased and EV sales slow. The company said it delivered roughly 387,000 vehicles from January through March, undershooting analyst forecasts and nearly 9% below the 423,000 it sold in the year-ago period.
With Tesla hitting a soft patch, news surfaced this week that the company plans to cut at least 10% of its global workforce in a bid to cut costs. "There is nothing I hate more, but it must be done," Tesla CEO Elon Musk wrote in a memo to staff. "This will enable us to be lean, innovative and hungry for the next growth phase cycle."
Tesla on April 23 is expected to report a drop in first-quarter earnings, and Wall Street will be looking for answers on the company's conference call. Tesla is also under pressure to deliver on its previous pledge to roll out a more affordable EV, dubbed the Model 2, amid reports the project is delayed.
"We need to hear the rational for the cost-cutting, the strategy going forward, product roadmap and an overall vision from Musk, otherwise many investors might head for the elevators during this category 5 perfect storm of weak demand that Tesla is seeing globally in 2024," Wedbush Securities analysts said in a report.
Electric vehicle sales rose only 2.7% to just over 268,000 in the first quarter, down from the 47% jump that fueled record sales in 2023, according to CBS News Detroit.
For Musk, the timing of the planned layoffs of thousands of workers is awkward. Tesla also filed this week to have shareholders vote again on a controversial $56 billion compensation package awarded to Musk for 2018. A Delaware judge voided the pay arrangement in January after lawyers for shareholders argued that Musk had set the terms in sham negotiations with directors beholden to him.
In a proxy filing on Wednesday, Tesla also stated it would hold a vote on moving its state of incorporation to Texas from Delaware. Tesla is set to hold its annual shareholders meeting on June 13.
—The Associated Press contributed to this report.
- In:
- Tesla
- Wall Street
- Elon Musk
- Electric Vehicles
- Electric Cars
Kate Gibson is a reporter for CBS MoneyWatch in New York.
veryGood! (28)
Related
- Trump's 'stop
- 5 family members and a commercial fisherman neighbor are ID’d as dead or missing in Alaska landslide
- Hill’s special TD catch and Holland’s 99-yard INT return lead Dolphins past Jets 34-13
- FDA expands cantaloupe recall after salmonella infections double in a week
- The Super Bowl could end in a 'three
- Rep. Dean Phillips, a Democrat running for president, says he won’t run for re-election to Congress
- 5 family members and a commercial fisherman neighbor are ID’d as dead or missing in Alaska landslide
- Dolly Parton, dressed as iconic Dallas Cowboys cheerleader, rocks Thanksgiving halftime
- John Galliano out at Maison Margiela, capping year of fashion designer musical chairs
- Jonathan Bailey’s Wicked Tease Will Have Fans Dancing Through Life
Ranking
- What were Tom Selleck's juicy final 'Blue Bloods' words in Reagan family
- Papa John's to pay $175,000 to settle discrimination claim from blind former worker
- Beyoncé shares Renaissance Tour movie trailer in Thanksgiving surprise: Watch
- Gaza shrinks for Palestinians seeking refuge. 4 stories offer a glimpse into a diminished world
- Costco membership growth 'robust,' even amid fee increase: What to know about earnings release
- Republican ex-federal prosecutor in Philadelphia to run for Pennsylvania attorney general
- Biden tells Americans we have to bring the nation together in Thanksgiving comments
- 20 years ago, the supersonic passenger jet Concorde flew for the last time
Recommendation
In ‘Nickel Boys,’ striving for a new way to see
Biden tells Americans we have to bring the nation together in Thanksgiving comments
Mexico’s arrest of cartel security boss who attacked army families’ complex was likely personal
Sean 'Diddy' Combs accused of sexual abuse by two more women
John Galliano out at Maison Margiela, capping year of fashion designer musical chairs
Paris Hilton spends first Thanksgiving with son Phoenix: 'Grateful for this beautiful life'
Internet casinos thrive in 6 states. So why hasn’t it caught on more widely in the US?
Adult Survivors Act: Why so many sexual assault lawsuits have been filed under New York law