$94B wiped off Tesla’s market cap in first two weeks of 2024

The company’s valuation has dropped 11.9% since December 30, after car rental company Hertz announced plans to sell 20,000 electric vehicles and return to gas-powered cars, citing low demand and high repair costs.

Tesla has reduced prices to stimulate demand in response to the global slowdown in electric vehicle sales, with notable declines in the U.S., as reported by Bloomberg.

“Investors’ main concern on Tesla is stagnating growth,” analyst Jeffrey Osborne said. The price cuts in China only fan those concerns, because it is starting to look like “a race to the bottom for the EV industry given intense competition in that market.”

Electric vehicle sales growth slowed throughout the previous year, culminating in a mere 1.3% increase in the last quarter, as high costs and interest rates deterred customers.

This decline in Tesla shares has led to a significant reduction in CEO Elon Musk’s net worth, the largest drop for any billionaire so far this year.

Musk’s assets have diminished by $23 billion, bringing his total to $206 billion. Despite this, Musk continues to be the world’s wealthiest individual, followed by Amazon founder Jeff Bezos.