Austen, Texas, Wednesday, May 1, 2024 – The shares of Tesla surged 12% on April 24, 2024, with Elon Musk’s discourse of accelerating new roll-ups for affordable electric vehicles in 2025, according to a report by Reuters. 1
The loss of the company’s financial incomes was ignored by Wall Street due to the contribution of the latest plans, Reuters said.
In recent times, particularly with Tesla’s announcement of its annual loss, Musk has been pledging that Tesla was considering cheaper electric vehicles.
It should be noted that Tesla is taking this decision at a time when its Chinese competitor BYD’s EVs are gaining popularity among EV users.
Cost-conscious EV shoppers will find a stark difference between BYD and Tesla.
BYD’s EVs range from $13,200 to $46,700, undercutting Tesla’s typical $50,000 starting price point. This affordability focus has positioned BYD as a budget-friendly alternative in the electric vehicle market.
Tesla, which has $460 billion in market value, slid 42% in stock this year, while it was planned to add around $50 billion. 2
It is expected that a $56 million compensation package offered by Musk will boost shareholder votes in June to implement Tesla’s development.
Nevertheless, the compensation package was voided by a Delaware court in January, according to the source.
Several Tesla investors were not accepting the package due to the devaluation of Tesla’s share price.
“We read ‘more affordable’ as potentially de-contented Model Y and Model 3 versions with improvements in software and AI/hardware capability, but at lower prices,” Morgan Stanley analyst Adam Jonas stated. 1
- Tesla stock soars: https://www.reuters.com/technology/tesla-jumps-musks-promise-more-affordable-cars-eases-growth-fears-2024-04-24/[↩][↩]
- Tesla stock soars: https://www.reuters.com/technology/tesla-jumps-musks-promise-more-affordable-cars-eases-growth-fears-2024-04-24/ [↩]
