Tesla's stock plummets, wiping away $73 billion in market capitalization

Tesla saw its shares tumble by as much as 11% as trading commenced on Thursday, resulting in a staggering $73 billion loss in the company's market capitalization. This downturn occurred mere hours after Tesla cautioned investors about decelerating growth in electric car sales and the looming threat posed by Chinese competitors.

During an earnings presentation on Wednesday, the premier automaker, which holds the title of the world's most valuable, indicated that its sales expansion for the current year could experience a significant slowdown, particularly as it focused on advancing its "next-generation" vehicle, likely a more affordable model.

Despite achieving a notable 38% surge in deliveries last year compared to 2022, Tesla had previously aimed for an annual growth rate of 50% over several years.

While Tesla's stock had experienced a remarkable doubling in value over the course of 2023, the bulk of these gains materialized in the first half of the year. As of 2024, the company's shares faced a lackluster start, plummeting by 16% prior to Wednesday's earnings report. Presently, Tesla's stock is trading at its lowest level since April of the previous year.