Tesla’s Valuation Sinks Below $500 Billion as Global Layoffs Add to Woes

Shares Tesla Inc have been in decline in 2024. This steep decline has now pushed the electric-vehicle maker’s market valuation below $500 billion.

Tesla’s sinking valuation and its recent global layoffs adds to the soured sentiment around the company. The stock has tumbled some 38% this year making Tesla shares the second-biggest decliner on the S&P 500 Index in 2024.

The company’s troubles started in October when it warned that demand for EVs was starting to slow. Then came news that the company intends to scrap plans to make a cheaper EV and focus on building a so-called robotaxi instead. Monday’s announcement of large-scale job cuts was the latest blow.

Tesla reports first-quarter results on April 23. Investors will be looking for an explanation as to why it’s making a strategic pivot at a time when growth is in doubt.

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