Yesterday, January 25, stocks lost 12% on Wall Street: it is the largest drop in a single session in a year. The decline came after Musk warned of slower growth for his electric cars in 2024, partly due to Chinese manufacturers
Yesterday, January 25, Tesla closed lower on Wall Street: the shares lost 12% and it is the largest drop in a single session in a year. With this decline, Tesla burned $80 billion in capitalization. The drop came after Elon Musk warned of slower growth for his electric cars in 2024.
Elon Musk’s warning
Elon Musk yesterday raised the alarm about electric cars made in China and warned of a “definitely” slower growth of Tesla in 2024, after a few months in which his giant did not shine. Without mincing words, the billionaire praised Chinese manufacturers and defined them as the “most competitive in the world“. He then warned: “If trade barriers are not imposed, they will demolish most automakers” globally. Musk’s reference is in particular to BYD, the giant that sees Warren Buffett among its shareholders and which has taken the scepter of queen of the electric world from his Tesla. “There are no obvious opportunities” for a partnership with a Chinese rival, Musk added, but stressed that Tesla is open to allowing Chinese competitors to use its charger network and license other technologies.
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Tesla’s strategy
To push demand and face increasingly fierce competition, Tesla has implemented an aggressive price cut over the last year which, however, has reduced the company’s margins and made investors nervous. The fourth quarter closed with a net profit more than doubled to 7.9 billion dollars, but only thanks to a one-off tax payment, while revenues were slightly below analysts’ expectations. Disappointing results that penalized Tesla on Wall Street, where observers were not even impressed by the announcement of the start of production – from mid-2025 in its plant in Texas – of an economical electric car, the “Redwood”. The stocks thus ended up losing 12%. In explaining the math, Musk elaborated in more detail on his request for a 25% stake in Tesla to push AI into the company without having to go elsewhere. His request has not yet received a response.
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WSJ: “Elon Musk uses illegal drugs, fears in the Tesla and Space
According to the American financial newspaper, the richest tycoon in the world, 52 years old, in addition to ketamine, would also have used LSD, cocaine, ecstasy and psychedelic mushrooms consumed at private parties around the world. Executives who sit on the boards of his companies fear repercussions on contracts and jobs
MUSK AND DRUGS
- “Elon Musk used illegal drugs.” This is the headline in the Wall Street Journal, which in a long article on the billionaire’s private habits reported the fears among some executives of his companies, such as Tesla and Space
BURNING MAN
- According to the WSJ, Musk would be at home at Burning Man, a festival in the Black Rock desert of Nevada where drugs are widely used “to let off steam”. Born from the idea of a group of friends in 1986, the event which is celebrated every end of summer promotes unlimited actions, including sex and drugs, and over the years has had as guests, among other billionaires such as Jeff Bezos, Larry Page and Mark Zuckerberg
PREVIOUS
- In 2018 the founder of Tesla and Space X ended up at the center of controversy for smoking marijuana in public. Last June the newspaper reported the news, confirmed by the person concerned, that Musk was taking small doses of psychedelic ketamine under medical prescription to treat depression. A consumption that would increase during public events