As Wall Street trading began, Tesla’s shares experienced a sharp decline following CEO Elon Musk’s warning about a potential slowdown in growth.
Today, the stock of the electric vehicle powerhouse dropped by 9.7% after announcing its first-ever decrease in yearly profits post-market close on Wednesday.
The company’s operating income saw a 35% reduction to $8.9 billion, marking its first downturn since becoming profitable in 2020.
Musk also cautioned that without trade barriers, Chinese automakers could significantly outcompete global players.
In the last quarter of 2023, Tesla was overtaken by China’s BYD as the leading electric car manufacturer worldwide.
In other news, the US stock markets opened on a positive note after data indicated a 2.5% growth in the American economy last year, suggesting the Federal Reserve’s success in reducing inflation without triggering a recession.
The Dow Jones Industrial Average opened with a gain of 56.18 points, or 0.2%, reaching 37,862.57.
The S&P 500 started higher by 18.11 points, or 0.4%, at 4,886.66, while the Nasdaq Composite rose by 73.70 points, or 0.5%, to 15,555.62 at the opening bell.
