Tesla Stock Price Plummets and Even a Recall: Elon Musk Has Been Bad News
Tesla stock price plummets and even a recall…Elon Musk has been full of bad news since the beginning of the year in 2024. On the 26th (local time), Reuters reported that Tesla is recalling 200,000 vehicles in the United States due to rear visibility defects. The National Highway Traffic Safety Administration (NHTSA) announced that it is recalling approximately 200,000 Model S, NHTSA, the regulator, added that rear visibility problems caused by software instability pose a threat to driver safety by increasing the risk of a car crash. This recall comes less than two months after Tesla recalled almost all of its vehicles in the U.S. to install new protections in its Autopilot advanced driver assistance system.
The previous day, Tesla Stock Price plunged 12.13% on the New York stock market, closing at $182.63 per share. This is because, in the earnings announcement, the operating profit ratio in the fourth quarter of last year fell below expectations, leading to continued selling by investors. Tesla Stock Price has fallen about 27% in one year.
Tesla, having delivered 1.8 million cars last year, faces pricing challenges amid increasing competition from Chinese companies like BYD. Despite robust deliveries, Tesla has reduced prices, leading to shrinking operating profits. The company issued a cautious forecast, anticipating a potential decline in this year’s sales growth rate. On Wall Street, concerns intensified as Tesla reported a lackluster performance in the fourth quarter of the previous year, with a halved operating profit rate. CEO Elon Musk, expressing apprehension about the future management landscape, refrained from presenting a specific growth target and lowered the target Tesla Stock Price.
RBC analyst Tom Narayan, while maintaining a buy recommendation, adjusted his price target downward from $300 to $297. Barclays’ Dan Levy expressed a pessimistic outlook, reducing the target Tesla Stock Price from $250 to $225, characterizing Tesla’s future as a “downhill covered in clouds.” Wells Fargo’s Colin Langan echoed similar sentiments, lowering Tesla’s price target from $223 to $200, citing limited short-term upside potential for the company.
In addition, Reuters also reported that Neuralink, a brain transplant company founded by Musk, was fined $2,480 (approximately 3.31 million won) for violating the U.S. Department of Transportation (DOT) hazardous material transportation regulations. DOT investigators inspected Neuralink’s facilities in Texas and California in February of last year and found that the company had not registered as a hazardous materials transporter. They also discovered that hazardous waste, including flammable liquid xylene, was not properly packaged.
According to the U.S. Centers for Disease Control and Prevention (CDC), xylene is a hazardous substance that can cause headaches, dizziness, confusion, loss of muscle coordination, and even death. Accordingly, the Department of Transportation (DOT) fined Neuralink a total of $2,480. However, DOT records did not specify whether any damage occurred as a result of Neuralink transporting hazardous materials.
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