Tesla (NASDAQ: TSLA) Investors have had a difficult start to 2024. The stock is down nearly 30% year to date, although returns have more than doubled through 2023. But in recent weeks, the news has continued to pile up, causing investors to take last year’s gains and sit down. on the sidelines.
Shares fell again today by as much as 7%. At 12:30 a.m. ET, Tesla shares were still down 3.8% to start this week’s trading.
Cold, rain and snow (and EVs)
It was not just profit-taking that led to this result investors selling Tesla shares this year. A number of other things have happened that call Tesla’s future prospects into question. Against the backdrop of multiple instances of extreme weather that have heightened consumer concerns about owning an electric vehicle (EV), the company itself is under fire.
Last week, a Delaware judge ruled against the company in a lawsuit that has now invalidated CEO Elon Musk’s lucrative pay package, which was approved in 2018. A shareholder sued the company, arguing that the nearly $56 billion pay package had not been fairly presented to investors and that Tesla’s board of directors did not act independently as it should.
But the share price drop may be more the result of two major weather events that have generated news that highlights some concerns about electric car ownership. Many consumers have no experience driving them, or even knowing an owner. So when a deep freeze hit the Midwest last month and Tesla owners in the Chicago area couldn’t charge their batteries in temperatures well below zero, some industry observers thought it could slow the pace of electric vehicle adoption. Now, an ongoing major weather event in Southern California has caused power…