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Tesla’s Challenging Period in 2024
Recent events have plunged Tesla into a period of turmoil in the year 2024. The company’s stock price has taken a significant hit, causing concern among both casual investors and industry observers alike.
Stock Performance and Analyst Ratings
On Thursday, Tesla’s stock reached a new 52-week low following a series of negative reports from analysts. Deutsche Bank analysts, in particular, lowered their ratings and price targets for the electric vehicle manufacturer. This downward trend was already in motion after CEO Elon Musk’s announcement of substantial layoffs affecting around 14,000 employees, as revealed in a leaked memo to Tesla’s global workforce of 140,000 individuals.
The layoffs, combined with concerns about the demand for electric vehicles (EVs), as noted by JPMorgan analysts, have further fueled apprehensions about Tesla’s future outlook.
Executive Departures and Shareholder Proposals
Adding to the company’s challenges, two high-level executives, Andrew Baglino and Rohan Patel, announced their resignations on Monday. Baglino, who served as Tesla’s head of energy engineering and powertrain, and Patel, responsible for public policy and business development, leaving their positions has raised questions about stability within the organization.
Furthermore, Tesla faced renewed scrutiny over Elon Musk’s massive $56 billion compensation package when shareholders were presented with a proposal to re-approve it, albeit at a reduced amount of $47 billion. Earlier in the year, a Delaware state judge had rejected the original plan, leading to a decrease in Musk’s net worth.
It is worth noting that during this tumultuous period for Tesla, Meta CEO Mark Zuckerberg’s net worth surpassed Elon Musk’s by a slim margin of $1 billion, adding another layer of significance to the financial landscape of technology titans.
As these events unfold, the future trajectory of Tesla remains uncertain, with stakeholders closely monitoring the company’s response to these challenges.
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