Topline
Tesla shares tumbled during premarket trading on Monday after a weekend spent slashing car prices and canceling key meetings, capping a chaotic week and continuing a dismal slide that has seen the company’s value plummet this year ahead of what is expected to be yet another tough week for the automaker.
Tesla CEO Elon Musk canceled a visit to India this weekend.
Key Facts
Tesla shares were trading under $143 per share during pre-market trading at 5:30 a.m. ET on Monday.
The price marks a fall of around 3% from the share price at closing on Friday, when it was trading at about $147 per share.
It is the automaker’s lowest price since January 2023, and aside from a roughly month-long dip around that time, shares have not been as cheap since late 2020.
The fall comes after a hectic weekend spent cutting prices for its cars — including its popular Model Y, as well as Model X and Model S vehicles — in major markets, including the United States, China and Germany, and the company told Reuters and the Guardian price cuts had also been made across many other countries in Europe, the Middle East and Africa.
Tesla also slashed the price of its Full Self-Driving (FSD) assisted driver software by a third to $8,000 on Saturday, a sign billionaire leader Elon Musk is still committed to betting part of the company’s future on self-driving cars and its anticipated robotaxi.
In another sign of the tumult at Tesla this weekend ahead of what is expected to be another tough week, Musk also canceled a planned trip to India to focus on “very heavy Tesla obligations,” potentially setting back opportunities for the carmaker to grow in the massive market.
What To Watch For
Tesla is set to release its first set of financial results on Tuesday. Analysts are expecting a bruising day for the company, especially after its January report revealed it had missed targets for sales and profits. In recent weeks, the Texas-based carmaker announced 10% cuts to its global workforce, including the departure of some senior executives, stepped up legal challenges to Musk’s $56 billion compensation package and recalled nearly 4,000 of its Cybertruck vehicles over fears of a pedal defect that could potentially lead to unintentional acceleration.
What We Don’t Know
Musk described his visit to India as “delayed,” though it is not clear when this will now go ahead. Musk has indicated it will be sometime this year and said “I do very much look forward to visiting later this year,” though provided no further information. The coming weeks are likely to be a busy period for some of the parties likely to be involved, notably senior Indian officials, who are now engaged in the world’s largest democratic election. Nearly a billion people are expected to head to the polls to vote in the election and it is expected to take a number of weeks to complete. Musk was slated to meet with Indian Prime Minister Narendra Modi on his visit to India, something he had said he was “looking forward” to and expected to include an announcement for a future Tesla factory in the world’s most populous country. Modi is fighting for, and widely expected to secure, a third term as prime minister.
Forbes Valuation
We estimate Musk’s net worth is $179.2 billion. He cofounded and runs a series of valuable companies, including rocket venture SpaceX, Tesla, Neuralink and social media platform X, which he controversially purchased as Twitter in 2022. His fortune makes him the third richest person on the planet, trailing Amazon founder Jeff Bezos ($193 billion) and French luxury goods titan Bernard Arnault ($215.4 billion).
Further Reading
Tesla’s Price Cuts Trigger New Round in China EV Price War (Bloomberg)
