Experts say that Tesla is in serious trouble as the company continues encountering problems in 2024.

Between the drop in share prices and accusations of blackmailing investors, Tesla has experienced several setbacks in the first quarter of the new year.

Tesla experienced its most notable problem in January, when, according to CNN, its share price fell a staggering 12%.

This was the lowest the price had fallen to in over a year. Following the drop, experts have suggested 2024 could be a slow year for Musk and Tesla.

According to CNBC, investors are concerned about Tesla’s outlook after it announced that vehicle volume growth “may be notably lower” in 2024.

Tesla argues that this is because it focuses on its “next-generation vehicles” and then explains to stockholders that it is “currently between two major growth waves.”

Tesla’s stock took even more beating as numerous brokers dropped the company’s target price. Barclays reportedly cut the stock price from $250 to $225.

A Barclays analyst wrote about the situation: “Not as bad as feared, but a cloudy path ahead reinforces some downside risk for now.”

To make matters worse, Elon Musk, the face of Tesla, has been accused of blackmailing investors in a series of tweets.

At the beginning of March, the Tesla CEO claimed he was “uncomfortable” with the company engaging in robotics and AI if he didn’t have “25 percent voting control.”

Elon Musk took that stance to ensure his ideas can influence the company’s AI programs without overstepping. Musk wrote, “Enough to be influential, but not so much that I can’t be overturned.”

Musk’s Threat to Work on AI Outside of Tesla
While ranting on X, Musk threatened the Tesla board, saying he would work on AI projects “outside of Tesla” should he not receive what he had requested.

While ranting on X, Musk threatened the Tesla board, saying he would work on AI projects “outside of Tesla” should he not receive what he had requested.

Shareholders Unhappy with Musk’s Comments
Investors are displeased with Musk’s ultimatum, and many are convinced that the CEO is literally blackmailing shareholders.

Investors are displeased with Musk’s ultimatum, and many are convinced that the CEO is literally blackmailing shareholders.

In an interview with CNBC, Tesla investor Ross Gerber said, “Now he seems to be blackmailing the Tesla shareholders, saying he won’t build stuff for us unless he gets another $30 billion.”

Gerber also argued that Musk’s demands are unreasonable.

“Where in the world does paying a CEO $30 billion make any logical sense in the modern world, who already has a $150 billion stake in the company?” he said.

Gerber argues that Musk is in complete control of the board, as friends and members of the CEO’s close family hold powerful positions.

“The idea that he doesn’t control Tesla when everybody on the board is a friend or family member of his is the part I’m really pushing back on,” he said.

Musk tried to reassure investors last month by promising a low-cost EV is still in the works. However, the company has yet to produce a prototype.

The budget vehicle is estimated to not hit the market until late 2025, further testing shareholders’ patience.

As if things were not bad enough, Musk’s pet project, the Cybertruck, hasn’t performed as well as the company anticipated. Indeed, many Tesla truck owners were disappointed with its lackluster performance.

Tesla Car Sales Fell in 2024
According to the BBC, Tesla sold less than 370,000 new vehicles in the first quarter of 2024. This was an 8% decrease compared to year-on-year sales, a figure much lower than experts anticipated.

According to the BBC, Tesla sold less than 370,000 new vehicles in the first quarter of 2024. This was an 8% decrease compared to year-on-year sales, a figure much lower than experts anticipated.

After news broke of Tesla’s lower vehicle sales, the company’s shares fell by around 4%. Dan Ives, an analyst for Wedbush Securities, described the lower figures as an “unmitigated disaster that is hard to explain away.”

One of Tesla’s problems is major disruptions in its supply chain. One event saw an arson attack at a factory in Germany, which halted work. Meanwhile, disturbances in the Red Sea have also led to a shortage of components, further grounding factory work.

Electric vehicle companies worldwide have been forced to reanalyze their EV ambitions after experts issued warnings of lower demand. While this could explain Tesla’s weaker-than-average sales, the company is evidently facing many personal problems. One such problem concerns its driverless car software.

Musk is many things, but non-confrontational is not one of them. In his response to Gerber’s claims, he called him an “idiot.” The Tesla CEO also noted that it was a “tough quarter” for all major EV companies.

Musk may have been correct in his assessment of the EV industry because Tesla’s biggest competitor, China’s BYD, also released reports on its Q1 sales, and it experienced a dip compared to the previous quarter.

Investor Warren Buffet backs the EV company, and its products, thanks to their lower prices, have appealed to many Asian and European citizens.