In a dramatic turn of events, Tesla witnessed a staggering 12% plunge in its stock value on Thursday, January 25, following CEO Elon Musk’s cautionary statements about an anticipated slowdown in sales growth for the electric vehicle (EV) giant. Musk’s remarks, delivered on Wednesday, included a warning that growth would be “notably lower” as Tesla shifts focus towards a more affordable next-generation electric vehicle slated for production at its Texas factory in the latter half of 2025.
While the promise of a cost-effective EV has the potential to boost deliveries in the future, Musk acknowledged the challenges in ramping up production due to the integration of cutting-edge technologies into the new model.
