Tesla's disastrous earnings report this week has sparked a sell-off of the world's largest electric vehicle manufacturer and widespread skep

What Tesla's troubles tell us about the EV industry

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2024-04-04 16:30:08

Tesla's disastrous earnings report this week has sparked a sell-off of the world's largest electric vehicle manufacturer and widespread skepticism about the state of the EV industry as a whole.

"This is a fork in the road, not just for Tesla, but for the entire industry," said Wedbush Securities analyst Dan Ives in an interview on Wednesday.

Tesla's stock sold off sharply this week after its earnings report showed the company was on track for its slowest quarter since 2022.

Elon Musk's company blamed the lower production and deliveries at least in part on what it called temporary logistical issues.

Tesla stock has fallen more than 33 per cent this year. Back in January of 2022 it was trading for more than $400 US. By the beginning of April its stock was worth a mere $167 US.

In the United States, car-rental giant Hertz is selling about 20,000 electric vehicles due to higher expenses related to collision and damage, and replacing them with cars using internal combustion engines.