Tesla (NASDAQ:TSLA) indicated a projection of “notably lower” sales growth in 2024 compared to the previous year, amidst increasing competition and a slowdown in demand from price-sensitive consumers. As a result, the EV giant’s shares plunged more than 12% on Thursday.
During a shareholder presentation, Tesla acknowledged it is transitioning from the initial surge in growth fueled by the success of its Models 3 and Y, to a forthcoming phase anticipated to be driven by an upcoming, more affordable, next-generation model.
Tesla’s fourth-quarter financial results showed an adjusted EPS of $0.71 and revenue of $25.17 billion, both falling short of the Wall Street expectations of $0.73 and $25.61 billion, respectively.