Tag: Tesla

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Tesla shares plunge 15% in one day – X goes off -line and Space X test flight explodes

Tesla shares down 50%

Tesla’s sell-off on Wall Street intensified on Monday, with shares of the electric vehicle maker plunging a whopping 15%, marking their worst trading day on the market since September 2020

On Friday, Tesla wrapped up a seventh straight week of losses, its longest losing streak since debuting on the Nasdaq in 2010. The stock has fallen every week since CEO Elon Musk went to Washington, D.C., to take on a major role in the Trump ‘2’ White House.

Since peaking at $479.86 on 17th December 2024 Tesla shares have lost more than 50% of their value, wiping out upward of $800 billion in market cap. Monday 10th March 2025 marked the stock’s seventh worst day on record.

Tesla 3 month share chart as of close 10th March 2025 – down a total of 50% and 15% in one day

Tesla 3 month share chart as of close 10th March 2025 – down a total of 50% and 15% in one day

Tesla led a broader slump in U.S. equities, with the Nasdaq tumbling almost 4%, its steepest decline since 2022.

During an interview on Monday 10th March 2025, Musk was reportedly asked how he manages to run his businesses while fulfilling his role in the Trump White House. He reportedly said he’s doing so – ‘with great difficulty’.

In addition to Tesla’s troubles, Musk’s social network X experienced several outages throughout the day on Monday 10th March 2025, and his company SpaceX is investigating two explosions in a row that occurred during test flights of its massive Starship rocket.

Elon Musk is also reported as saying that he expects to remain in the Trump administration for another year. He posted on X that ‘It will be fine long-term’, referencing Tesla’s steep stock price decline.

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Tesla shares have declined every week since Elon Musk joined team Trump

Tesla in the red

For seven consecutive weeks since Elon Musk travelled to Washington to join the Trump administration, shares in his automaker have declined, closing on Friday at $270.48.

This marks the longest losing streak for Tesla in its 15 years as a public company.

Tesla shares concluded the week a decline of over 10%, reaching their lowest level since 5th November 2024, U.S. Election Day, when they closed at $251.44.

Since their peak at $480 on 17th December 2024, Tesla has lost over $800 billion in market capitalisation.

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Tesla’s market cap falls below $1 trillion

Tesla

Tesla shares sank 8% on Tuesday 25th February 2025 and have now lost most of their gains that followed President Donald Trump’s election victory in November 2024.

The stock has plunged 25% this year, while the Nasdaq is down 1.5%.

It was also reported on that the company’s long-awaited upgrade of its partially automated driving system in China left owners unimpressed.

Tesla 3-month chart as of 25th February 2025

Tesla 3-month chart as of 25th February 2025

Bump to slump?

The ‘Trump Bump’ – a term referring to the surge in stocks and other assets, such as cryptocurrency, following Donald Trump’s election and inauguration seems to have plateaued.

This is most evident in Tesla shares, which plummeted Tuesday 25th February 2025, wiping out most of the post-election gains linked to CEO Elon Musk’s association with Trump.

Concerns about Tesla pertain to the company’s and Musk’s significant amount of time spent in Washington, D.C.

Investors are increasingly worried about impact of Trump’s tariffs on the economy. A U.S. Conference Board survey indicated pessimism regarding job availability, business conditions, and future income, along with heightened expectations for inflation in 2025.

The 10-year Treasury yield, considered an indicator of growth expectations, declined on this news. Stocks continued to fall. If this trend does not reverse soon, we could be facing a ‘Trump Slump.’

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Musk’s xAI releases new Grok 3 AI

xAI Grok AI

Elon Musk’s AI company, xAI, has recently released its latest AI model, Grok 3.

This new AI model is designed to be significantly more powerful and capable than its predecessor, Grok 2.
  • Enhanced Capabilities: Grok 3 boasts 10 times more computing power than Grok 2 and has been trained on an expanded dataset, including court case filings.
  • Reasoning Models: Grok 3 includes reasoning models that can carefully analyze and fact-check information before providing responses. This helps in avoiding common pitfalls of AI models.
  • Benchmark Performance: Grok 3 has outperformed other leading AI models, including OpenAI’s GPT-4o and DeepSeek’s R1, on various benchmarks such as AIME (math questions) and GPQA (physics, biology, chemistry problems).
  • New Features: The Grok app now includes a ‘DeepSearch’ feature that scans the internet and xAI’s social network, X, to provide summarised responses to user queries.
  • Subscription Plans: xAI has introduced a new subscription plan called SuperGrok, which offers additional reasoning capabilities and unlimited image generation.

Grok 3 is being hailed as the ‘smartest AI on Earth’ by Musk, and it’s expected to have a significant impact on various industries.

Definition

Grok is a neologism (a newly coined word or expression), referenced by Robert A. Heinlein for his 1961 science fiction novel Stranger in a Strange Land. It means to understand something so deeply that you become one with it.

Grok is a term used in computer programming to mean to ‘profoundly understand something‘, such as a system, a language, or an algorithm.

Less woke

Grok, the company previously reportedly said, is modelled on ‘The Hitchhiker’s Guide to the Galaxy’. 

It is supposed to have ‘a bit of wit, a rebellious streak’ and it should answer the ‘spicy questions’ that other AI might dodge, according to a statement from xAI.

I wonder if it has been modelled on Elon Musk?

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Musk is everywhere!

Elon Musk

Elon Musk is the world’s richest person and the leader of Tesla, SpaceX, X, The Boring Company, x.AI, and Neuralink.

He is also the co-founder of PayPal and Zip2 and now the co-leader of DOGE – of U.S. Department of Government Efficiency and also recently led a group of investors in a bid to acquire OpenAI.

From a business perspective, Musk’s achievements are undeniable and even astonishing. The companies he leads are not only market leaders but also pioneers in their respective fields – consider how Tesla initiated the electric vehicle industry or how SpaceX successfully commercialised spaceflight.

Paradoxically, achieving success on a broad scale can have adverse effects. Investors appear to be increasingly concerned that Musk, despite his business acumen, is becoming distracted.

Tesla shares have declined over the past five trading days, dropping more than 6% on Tuesday 11th February 2025 as Chinese competitor BYD seems to be surpassing the company in AI-enabled autonomous driving.

If hands-free driving becomes a reality at Tesla, it could allow Musk to engage in other ventures without negatively impacting the company’s shares.

What you need to know today

BYD is a Tesla threat – but this is Elon Musk we’re talking about

Tesla shares fell 6.3% Tuesday 11th February 2025 after Chinese EV maker BYD said it will integrate DeepSeek into its autonomous driving technology and offer it in nearly all its vehicles.

There are also concerns over Musk’s distractions, such as his bid for OpenAI and his role at the ‘DOGE’ – Department of Government Efficiency in the White House.

Tesla’s stock price has fallen over 16% in the past five trading days

Tesla’s stock price has fallen over 16% in the past five trading days (5-day chart as of 11th February 2025)
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China’s electric vehicle boom is becoming increasingly focused on hybrids

Hybrid vehicle

Hybrid-powered vehicles are becoming more popular than battery-only ones in China, according to latest full-year reports, even as consumers move away from fossil-fuel-only cars.

Market leader BYD reported that well over half of the 4.3 million passenger cars it sold in 2024 were hybrid-powered, marking a significant reversal from 2023.

Chinese electric car start-ups that have exclusively sold battery-powered vehicles generally delivered fewer cars in 2024 compared companies that also offered hybrid models.

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Tesla shares climb to record high – boosted by Trump election victory

Tesla EV

Tesla shares soared to an all-time high on Wednesday exceeding their previous record set in 2021, driven by a post-election rally and heightened enthusiasm Wall Street for Elon Musk’s electric vehicle company.

The stock increased to an intraday high of $415, exceeding its previous peak by 50 cents and closed above its highest finish of $409.97 recorded on 4th November 2021.

Tesla’s market has increased reportedly increased by around 69% this year, with nearly all of those gains occurring after Trump’s election victory early last month. The stock’s 38% rally in represented its monthly performance since January 2023 and ranks as the 10th best on record.

Reportedly according to Federal Election Commission filings, Musk invested $277 million into a pro-Trump campaign effort and transformed his support for the Republican nominee into a full-time job in the lead-up to the election. He financed an operation in swing states to register voters and utilised his social media platform, to promote his chosen candidate, often disseminating misinformation.

The world’s wealthiest individual, whose net worth has increased to over $360 billion, is poised to head the Trump administration’s ‘Department of Government Efficiency,’ DOGE – together with former Republican presidential candidate Vivek Ramaswamy.

The newly formed DOGE will be tasked with culling government bureaucracy by streamlining and junking departments.

Musk’s role may grant him authority over the budgets and staffing of federal agencies, well as the capability to advocate for the removal of inconvenient regulations. During a Tesla earnings call in October, Musk reportedly stated intention to leverage his influence with Trump to create ‘Federal approval for autonomous vehicles.’ At present, approvals are at the state level.

Is business now openly running he U.S. government?

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Trump rumour to relax U.S. vehicle self-driving rules pushes Tesla stock higher

Autonomous driving

Tesla shares enjoyed a Trump pump on Monday 18th November 2024 after reports that President-elect Donald Trump’s team intend to prioritise a federal framework for regulating autonomous vehicles within the U.S. Department of Transportation.

Elon Musk was a prominent advocate in the business sector for Trump’s re-election campaign leading up to this month’s elections.

Recently, Trump appointed Musk and former Republican presidential candidate Vivek Ramaswamy to head the newly established Department of Government Efficiency.

Tesla 5-year share price chart

Tesla 5-year share price chart

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Trump announces the new ‘Department of Government Efficiency’- DOGE – Dogecoin climbs over 150% on the news

DOGE

The purchase of Meme coins is often viewed as indicators of retail interest and the willingness to take risks in the cryptocurrency market. Increased activity in meme coins typically signals that retail investors are engaging and are inclined to speculate more aggressively on the risk spectrum.

Trump initially proposed the concept of an efficiency commission in September 2024. Since that time, Musk -who has previously referred to himself as the ‘Dogefather’ – is known for making public statements about the meme coin that affect its value, has posted on his social media platform X, referring to the commission as the ‘Department of Government Efficiency’ or ‘D.O.G.E.‘

Dogecoin’s relevance surged in 2021 due to Elon Musk’s endorsement and the continuous hype on social media, which became a significant catalyst for the cryptocurrency. In May of that year, Musk’s tweets propelled Dogecoin to its peak value around 67 cents, according to market analysis. However, his reference to Dogecoin as ‘a hustle’, caused its value to plummet.

Recently, Dogecoin’s value increased following the post-election announcement by President-elect Donald Trump about the establishment of the ‘Department of Government Efficiency‘, which he acronymized as ‘DOGE’ in his statement.

Elon Musk, CEO of Tesla, and Vivek Ramaswamy, the former Republican presidential candidate and co-founder of Strive Asset Management, have been appointed to lead this department.

According to Trump’s statement, their role will be instrumental in his administration’s efforts to dismantle government bureaucracy, reduce unnecessary regulations, eliminate wasteful spending, and reorganise federal agencies.

It’s time for D.O.G.E.

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Elon Musk wants to make Tesla a $25 trillion company by 2040

Autonomous vehicle

Elon Musk’s Vision for Tesla’s Trillion Dollar Future

Elon Musk, the visionary CEO of Tesla, has consistently set ambitious goals for the company. Among his most audacious claims is that Tesla could potentially become a multi trillion-dollar company and even reach a valuation of $25 trillion, largely driven by the deployment of robotaxis.

Robotaxi vision

Tesla’s robotaxi concept is centred around autonomous vehicles that can operate as self-driving taxis. These vehicles are equipped with Tesla’s Full Self-Driving (FSD) technology, which Musk believes will revolutionize transportation. By transforming Tesla cars into autonomous ride-sharing vehicles, the company could generate significant revenue without increasing the number of cars sold.

Projections

Musk’s financial projections are based on the immense potential of the robotaxi market

  1. Revenue Generation: Each Tesla vehicle could earn substantial income as a robotaxi. If Tesla owners opt into the robotaxi network, Tesla could take a share of the revenue generated from these rides.
  2. Cost Efficiency: Autonomous driving reduces the need for human drivers, leading to lower operational costs. This efficiency could make robotaxis more affordable for users and highly profitable for Tesla.
  3. Reduced pollution: will help meet green energy goals.
  4. Market Penetration: As autonomous technology matures, the adoption of robotaxis could grow rapidly, capturing a significant share of the global transportation market.

Market potential

The global ride-hailing market is already valued at hundreds of billions of dollars, and with the introduction of autonomous vehicles, this market is expected to expand further. Tesla’s early entry and continuous advancements in FSD technology position it to be a dominant player in this space.

Challenges

While the potential is enormous, there are several challenges and scepticism surrounding Musk’s projections

  1. Regulatory Hurdles: Autonomous vehicles must navigate a complex regulatory landscape. Approval processes and safety standards vary by region, which could delay widespread adoption.
  2. Technical Milestones: Achieving full autonomy is a significant technical challenge. Tesla’s FSD technology is still in development, and perfecting it for widespread use requires overcoming numerous technical obstacles.
  3. Market Competition: Tesla is not the only player in the autonomous vehicle market. Competitors like Waymo, Cruise, and traditional automakers are also investing heavily in autonomous technology.

Conclusion

Elon Musk’s vision of making Tesla a trillion-dollar and eventually a $25 trillion company through robotaxis is both bold and captivating. The success of this vision hinges on the successful deployment and adoption of autonomous driving technology. While there are significant challenges to overcome, Musk’s track record of defying odds and achieving groundbreaking innovations keeps the possibility within the realm of achievable dreams.

The future of transportation, as envisioned by Musk, could fundamentally reshape how we move and how Tesla thrives as a pioneer in autonomous mobility.

Tesla’s future does seem promising with the introduction of Optimus, their humanoid robot, as well as their advancements in solar energy and battery technology.

The future looks very bright for Tesla.

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Nasdaq hits new all-time high – Tesla enjoys another great day

Nasdaq index at new high!

The Nasdaq Composite climbed to an all-time high on Friday 25th October 2024, boosted by BIG tech stocks.

The tech-heavy index rose 0.56% to 18,518.61

The tech-heavy Nasdaq Composite index rose 0.56% to 18,518.61

Tech stocks boosted the market ahead of their upcoming earnings. Nvidia added 0.8%, and shares of Meta Platforms, Amazon and Microsoft were also higher.

Some analysts are suggesting it may be time to short Amazon and Apple as they head into earnings season? Let’s see.

Tesla helped boost the Nasdaq as its stock climbed to close at a 13-month high, sustaining its rally post-earnings.

Tesla enjoyed its best market day since 2013, the stock rose more than 3% on Friday 25th October 2024, closing at its highest since September 2023.

Tesla 5-day stock chart as of 25th October 2024

Tesla 5-day stock chart as of 25th October 2024
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Tesla beats earnings forecast in third quarter 2024

Tesla


Tesla shares climbed 12% in extended trading after the company’s third-quarter earnings beat Wall Street estimates, following a long slump.

However, Tesla’s revenue for that period, up 8% year on year, marginally missed expectations. “Vehicle growth” will hit up to 20%-30% next year, said CEO Elon Musk, thanks to “lower cost vehicles” and the “advent of autonomy.” Apparently, this was presented as a ‘best guess’.

Profit margins reportedly received a boost from $739 million in automotive regulatory credit revenue during the quarter. Automakers must acquire a certain number of regulatory credits annually. Those unable to meet the requirement can buy credits from companies like Tesla, which has a surplus due to its exclusive production of electric vehicles.

Automotive revenue reportedly rose 2% to $20 billion, up from $19.63 billion in the same quarter the previous year, and has remained roughly stable since late 2022. Energy generation and storage revenue reportedly surged 52% to $2.38 billion, while services and other revenue, which includes income from non-warranty Tesla vehicle repairs, increased by 29% to $2.79 billion.

Tesla quarterly revenues by business section

Tesla quarterly revenues by business section

Tesla share price and close and ‘after hours’ trading 23rd October 2024 (09:15 BST)

Tesla share price and close and ‘after hours’ trading 23rd October 2024 (09:15 BST)

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Tesla shares dropped 9% on Friday 11th October 2024 after Cybercab Robotaxi event disappointed investors

Elon Musk's Sci-Fi vision

Tesla’s stock declined on Friday 11th October 2024 following the electric vehicle maker’s highly anticipated robotaxi event, which left investors unimpressed

£60 billion was wiped off Tesla market cap

CEO Elon Musk showcased the Cybercab concept vehicle, announcing that it would be available for purchase at a price below $30,000.

Analysts reportedly commented that the event did not emphasise any immediate opportunities for Tesla, focusing instead on Musk’s long-term vision for fully autonomous driving.

At the ‘We, Robot’ event on Thursday 10th October 2024, CEO Elon Musk presented the Cybercab, a sleek, silver two-seater without steering wheels or pedals, underscoring his company’s goal to develop a fleet of self-driving vehicles and robots.

Musk expressed his hope for Tesla to start producing the Cybercab by 2027, though he did not specify the manufacturing locations. He reiterated that the Tesla Cybercab would be sold for less than $30,000.

Furthermore, he anticipated that Tesla’s Model 3 and Model Y electric vehicles would feature ‘unsupervised FSD’ operational in Texas and California by next year. FSD, standing for Full Self-Driving, is Tesla’s advanced driver assistance system, currently available in a supervised format.

Investors and analysts were underwhelmed by the event. Tesla shares fell.

Tesla one year chart as of 11th October 2024

Tesla one year chart as of 11th October 2024

Elon Musk’s wealth

Elon Musk is projected to become the world’s first trillionaire by 2027, as per a recent report by Informa Connect Academy. Among global billionaires, Musk is nearest to reaching the 13-figure threshold, with his wealth continuing to increase.

Bloomberg Billionaire Index

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Tesla misses delivery estimates – stock drops

Tesla EV

Tesla posted its third-quarter vehicle production and deliveries report on Wednesday 2nd October 2024 – the stock fell 3.7%.

Total deliveries Q3 2024: 462,890 – Total production Q3 2024: 469,796

Analysts had projected Tesla would deliver 463,310 vehicles by the end of September 2024. However, other sources indicated a larger shortfall; the average analyst predictions were at 469,828 vehicles, while an independent researcher known as ‘Troy Teslike,‘ popular among Tesla enthusiasts, estimated 472,000 deliveries for the quarter.

Comparatively, Tesla reported 435,059 deliveries and 430,488 EVs produced in the same period last year. In the previous quarter, the company achieved 443,956 deliveries and produced 410,831 vehicles.

In the U.S., competitors such as Rivian are advancing, and traditional automakers like Ford and General Motors are increasing their electric vehicle sales, albeit scaling back earlier electrification targets.

Ford announced a 12% increase in EV sales for the third quarter, totaling 23,509 vehicles on Wednesday 2nd October 2024.

General Motors reported a 60% rise in EV sales for the same quarter compared to the previous year, with 32,100 units sold, which represents 4.9% of its total sales volume.

Tesla’s reputation in the U.S. has faced challenges, partly due to CEO Elon Musk’s controversial actions, including endorsing former President Donald Trump and disseminating what has reportedly been described by the White House as ‘racist hate“, along with alleged misinformation about immigration and election fraud on X, his social media platform.

Despite these issues, Tesla remains the leading seller of battery electric vehicles in the U.S., with Hyundai trailing significantly behind.

Tesla -year chart as of 2nd October 2024

Tesla -year chart as of 2nd October 2024
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U.S. stocks recovery attempt fizzles out

Fizzle

Stocks closed lower on Wednesday 7th August 2024, failing to fully recover from Monday’s sell-off.

The Dow Jones Industrial Average dropped 234 points to 38763.45. The S&P 500 fell to 5199.50, while the Nasdaq Composite closed at 16195.81.

During the day, the Dow had surged around 480 points, the S&P 500 had climbed 1.73%, and the Nasdaq had risen over 2%.

Dow Jones one day chart 7th August 2024

Dow Jones one day chart 7th August 2024

S&P 500 one day chart 7th August 2024

S&P 500 one day chart 7th August 2024

Nasdaq Composite one day chart 7th August 2024

Nasdaq Composite one day chart 7th August 2024

However, a downturn in Nvidia and other major tech stocks, after an initial rise, led to a significant drop in the afternoon. Nvidia retracted by 5.1%, Super Micro Computer plummeted 20.1% following its fiscal Q4 earnings missing analyst predictions, Tesla fell 4.4%, and Meta Platforms decreased by 1%.

Nvidia one day chart 7th August 2024

Nvidia one day chart 7th August 2024

One month chart Super Micro Computer 7th August 2024

One month chart Super Micro Computer 7th August 2024

Nvidia one day chart 7th August 2024

Nvidia one day chart 7th August 2024

The U.S.10-year Treasury yield continued to rise, increasing by about six basis points to 3.95%, returning to its level before the disappointing job figures last Friday, which had sparked concerns of an economic slowdown.

The Volatility Index (CBOE), the so called ‘fear gauge‘ was trading at around 29, having dropped to as low as 22 earlier in the day. This sharp decrease from Monday 5th August 2024 suggests that investor fears are subsiding, however, they remain higher than at the beginning of the month.

The Volatility Index (CBOE) on 7th August 2024

The Volatility Index (CBOE) on 7th August 2024
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$1 trillion rout as Markets punishes tech stocks

Stocks drop

The seven most valuable U.S. tech companies experienced a combined loss of $1 trillion in market value at the start of Monday’s trading session – 5th August 2024

The Nasdaq declined over 3% following its sharpest three-week drop in two years.

Nvidia’s shares fell approximately 6%, while Apple’s dropped more than 4%.

On Monday, as the U.S. markets commenced trading, the market capitalization of the largest tech companies plummeted by about $1 trillion, exacerbating a decline that pushed the Nasdaq into correction territory the previous week.

Markets go up and markets go down

In early trade Nvidia’s market cap decreased by over $300 billion, but it swiftly regained about half of that loss. The chipmaker’s shares ultimately closed down 6.4%, equating to a $168 billion loss. Apple and Amazon saw their valuations fall by $224 billion and $109 billion at market open. Apple’s market cap finished 4.8% lower, a $162 billion decrease. Amazon’s valuation fell by 4.1% at closing, a $72 billion reduction.

Including significant drops in Meta, Microsoft, Alphabet, and Tesla, the top seven tech giants saw a $995 billion loss in market value in the initial moments of trading, although they did recover somewhat as the day went on.

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U.S. stocks slip as Nasdaq tumbles for worst day since 2022 – Tesla and Alphabet fall

Stocks in the red

Stocks sold off Wednesday 24th July 2024, blighted by underwhelming reports from Tesla and Alphabet – leading the Nasdaq Composite and the S&P 500 to post their worst sessions since 2022.

The S&P 500 index dropped to closing at 5427, while the tech-heavy Nasdaq slid around 3.65% to end at 17342. The Dow Jones Industrial Average shed 504 points closing at 39853.

Nasdaq Comp one day chart 24th July 2024

Nasdaq Comp one day chart 24th July 2024

Shares of Google parent company Alphabet fell 5% for their biggest one-day drop since 31st January, when they dropped 7.5%. Although Alphabet reported good numbers, YouTube advertising revenue came in below the consensus estimate causing share to dip.

Alphabet one day chart 24th July 2024

Tesla shares declined around 12% – their worst day since 2020 – on weaker-than-expected results and a 7% year-on-year drop in auto revenue.

Tesla one day chart 24th July 2024

Nasdaq Comp one day chart 24th July 2024
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Tesla shares fall after weaker-than-expected results

Tesla stock

Tesla’s shares dropped in U.S. pre-market trading following the electric car maker’s Q2 earnings report, which fell short of expectations.

The company saw a 7% year-on-year decrease in automotive revenue for the June 2024 quarter, down to $19.9 billion, and a decline in its ‘adjusted’ earnings margin.

Investors are divided on Tesla’s stock, with some concerned that the core car business is struggling, while others remain optimistic about Musk’s vision for autonomous driving.

Tesla continues to lead in U.S. electric vehicle sales, yet it’s facing declining market share as competitors emerge, partly due to its older range on offer and Elon Musk’s occasional controversial public statements.

Attention has shifted to other aspects of Tesla’s narrative, such as the anticipated introduction of a new mass-market vehicle to refresh its vehicle lineup. Musk reportedly re-affirmed that Tesla plans to launch an ‘affordable’ car in the upcoming year.

Tesla 3-year share price chart as at: 23rd July 2024

Tesla 3 year share price chart as at: 23rd July 2024

The earnings also highlighted his robotaxi vision. Musk shared his ‘expectation’ of a future where Tesla owners could allow their vehicles to operate in an Uber-like ride-hailing environment, with the cars driving autonomously.

And then we have the prospect for the greatly hyped arrival of Tesla’s humanoid robot due in 2025.

As we all know – Musk does much more than EVs.

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Elon Musk suggests Tesla will use humanoid robots in 2025

A humanoid robot image

Tesla boss Elon Musk says the electric car maker will start producing and using humanoid robots from next year.

In a social media update, Elon Musk stated that Tesla will initially employ the robots, with plans to commence production for sale by 2026.

He had earlier anticipated that the robot, named Optimus, would be operational in Tesla factories by this year’s end. Additionally, companies such as Honda Rototics and Boston Dynamics are also advancing their humanoid robot technologies.

“Tesla will have genuinely useful humanoid robots in low production for Tesla internal use next year and, hopefully, high production for other companies in 2026,” Mr Musk posted on his social media platform X.

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Tesla shares recover 2024 losses with a 27% rally in one week

EV

Following a dismal beginning to 2024, Tesla’s stock has experienced a sharp rally, erasing its losses for 2023.

Tesla’s shares ended on Friday at $251.55, marking a 27% increase for the week.

The automaker announced on Tuesday 2nd July 2024 that its second-quarter vehicle deliveries surpassed forecasts.

Tesla 5-day chart – share price closed at 251.55

Tesla 5-day chart – share price closed at 251.55
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Nasdaq and S&P 500 both hit new highs as markets close early for U.S. Independence Day!

U.S. Independence Day

The S&P 500 reached new heights in a shortened trading session on Wednesday 3rd July 2024, with investors seemingly dismissing lacklustre economic data.

The S&P 500 closed at a new high of 5537, while the Nasdaq Composite finished the session at 18188, buoyed by rallies in technology and AI stocks like Tesla and Nvidia. Both indices reached new all-time highs during the session and closed at record levels.

The Dow Jones Industrial Average lost just closed down at 39308.

Trading volume was subdued as the New York Stock Exchange closed early at 1 p.m. ET. The exchange will remain closed on Thursday 4th July 2024 for Independence Day celebrations.

S&P 500: One-year chart – index closed at a new record high

S&P 500 One-year chart closed at new record high

Nasdaq Composite: One-year chart closed at new record high

Nasdaq Composite: One-year chart closed at new record high
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The EU imposes higher tariffs of up to 38% on Chinese EVs

EU and EV's

In a significant development that may affect the electric vehicle (EV) market, the European Union (EU) has tentatively agreed to levy tariffs on Chinese EV manufacturers.

This decision reportedly follows an inquiry into the surge of inexpensive, government-subsidized Chinese vehicles entering the EU market.

From 4th July 2024, Chinese EV producers who participated in the investigation will incur an average duty of 21%, while those who did not will face a substantial 38.1% tariff. Specific rates will be imposed on firms such as BYD, Geely, and SAIC.

Additionally, non-Chinese automobile companies manufacturing some EVs in China, including those based in the EU like BMW, will also be impacted. Tesla might receive a specially calculated duty rate upon request.

These levies are on top of the current 10% tariff on all electric cars manufactured in China. The EU’s action comes after the United States’ drastic measure last month to increase its tariff on Chinese electric cars from 25% to 100%.

Some critics view this anti-subsidy probe as protectionist, potentially harming China-EU economic relations and the worldwide automotive production and supply chain. The German Transport Minister has reportedly cautioned about the possibility of a trade conflict with Beijing.

Although the tariffs are intended to shield the EU’s own industry, they highlight the challenges of maintaining a balance between free trade and competitiveness in the swiftly changing EV sector.

Unless a qualified majority of EU nations opposes it, the tariffs will become permanent in November 2024. The European car industry stresses the need for free and fair trade but recognizes that promoting the adoption of electric cars requires a diverse strategy.

As the dispute over tariffs persists, the repercussions for the EV market are yet to be determined.

One thing is for sure, the consumer will suffer through these tariffs and also through extra road tax levies yet to be introduced, especially in the UK.

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Tesla’s stock jumps 15% after advanced driver-assistance tech test in China

Electric vehicle

Tesla’s shares surged on Monday 29th April 2024, marking their best performance since March 2021, following the company’s achievement in advancing its driver-assistance technology in China.

The stock closed 15% higher, buoyed by investor enthusiasm over Tesla CEO Elon Musk’s visit to China.

On Sunday 28th April 2024, Tesla announced that Chinese authorities had lifted restrictions on its vehicles after they met the nation’s data security standards.

This development has heightened anticipation for the imminent availability of Tesla’s Full Self-Driving (FSD) software in China, the world’s biggest market for electric vehicles.

Tesla share price closed at 194.05 after enjoying a 15% climb

Tesla share price closed at 194.05 after enjoying a 15% climb
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BYD profits and sales fall

Electric vehicle

Chinese automotive giant BYD has experienced a decline in profits amid a slowdown in electric vehicle (EV) demand and a price war in the largest car market globally.

The company reported earnings of $630 million (£502 million) for the first quarter, a drop of over 47% from the previous quarter.

Competing with Elon Musk’s Tesla for the title of the world’s top EV seller, BYD recently fell behind as Tesla regained the lead earlier this month.

In the first quarter, BYD’s sales of battery-only vehicles fell to just over 300,000, a decrease from the last quarter of 2023’s record high of 526,000 units.

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Tesla shares jump after affordable model announcement despite revenue drop shown in latest accounts

Electric vehicle

Tesla’s profits have significantly decreased so far in 2024, prompting the company to accelerate the introduction of new models.

The company is also reducing its workforce by thousands in an effort to improve its financial outlook. The electric vehicle manufacturer reported earnings of $1.13 billion for the first quarter, a sharp decline from $2.51 billion in the previous year.

Job losses

Owned by billionaire Elon Musk, Tesla plans to lay-off over 6,000 workers across its Texas and California locations. The firm has been challenged by reduced demand and increased competition from more affordable Chinese imports, resulting in a 43% drop in its stock value throughout 2024.

This month, Tesla announced a 10% cut in its global workforce. Revenue figures for the first quarter of 2024 showed a total of $21.3 billion, falling short of the anticipated $22 billion.

However, Tesla’s shares saw a nearly 12.5% increase in after-hours trading following the announcement that the launch of new models would be moved up from the latter half of 2025. The company has yet to disclose the pricing for these upcoming vehicles.

On other Tesla matters…

Mr. Musk’s ‘compensation package’, previously valued at $56 billion, was rejected by a Delaware judge. The judge reportedly determined that Tesla’s directors failed to fulfill their duties to the company when they awarded Mr. Musk the payout.

With the decline in Tesla’s stock value, the compensation package is now estimated to be about $10 billion less, yet it remains larger than the GDP of many small countries.

Musk also appears to have his sights set on creating a Tesla manufacturing hub in India.

Tesla’s Cybertruck was reportedly recalled recently with a suspected accelerator pedal issue.

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Tesla to lay off over 10% of global workforce

Tesla charge EV point

The company intends to reduce its global workforce by over 10%, amounting to roughly 14,000 employees

As of December, Tesla had a total of 140,473 employees worldwide.

This decision is believed to be a response to the obstacles Tesla is encountering with slowing growth and operational effectiveness and cheaper competition.

In an internal memo, billionaire owner Elon Musk addressed the layoffs, acknowledging that it was a difficult decision but necessary for the company’s future. He emphasized the need to streamline operations and prepare for the next phase of growth. 

The layoffs have already begun and also include some key executives. 

Why?

Analysts offer diverse interpretations of the layoffs. Some perceive them as indicative of cost pressures stemming from Tesla’s investments in new models and artificial intelligence (AI).

The company’s delay in updating its aging vehicle lineup, coupled with high interest rates, has weakened consumer demand. Moreover, the influx of affordable electric vehicles, especially from China, such as BYD, has intensified the competition.

Efficiency drive?

While the layoffs indicate challenges, they also highlight Tesla’s dedication to adaptability and efficiency. As the electric vehicle (EV) industry progresses, Tesla strives to stay lean, innovative, and strategically positioned for ongoing growth. The company is scheduled to announce its quarterly earnings later this month, which analysts will scrutinize in the context of the recent workforce reductions.

In summary, Tesla’s layoffs are indicative of the intricate dynamics within the automotive sector, where innovation, cost control, and market forces converge.

The company’s capacity to steer through these complexities will determine its future prosperity.

Tesla share price year-to-date (April 2024)

Tesla share price year-to-date (April 2024)