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Tesla (NASDAQ:TSLA) stock is retreating after CEO Elon Musk warned that the automaker’s growth would slow significantly this year, and the firm reported that its auto revenue had barely increased last quarter. Also notable is that Musk indicated that he could leave the company.
Slower Growth and a Tiny Revenue Increase
Musk reported that the growth in the number of electric vehicles (EVs) that TSLA sells would be “notably lower” this year compared with 2023. However, the automaker suggested that its growth could reaccelerate in 2025, noting that TSLA is “currently between two major growth waves.”
Musk stated yesterday that the automaker is developing a “next-generation low-cost vehicle,” and Reuters has reported that the automaker could kick off the production of the vehicle in the middle of next year.
Given the strength of Tesla’s brand and the relatively small number of affordable EVs on the market, an inexpensive EV from the firm could conceivably become a blockbuster.
But Tesla’s recent past has not been so impressive as its automotive revenue, hurt by price cuts, rose just 1% last quarter versus the same period a year earlier.
TSLA Stock and Musk’s Threat
The CEO showed no signs yesterday during Tesla’s earnings call of backing down from his threat, issued last week, to leave the firm if his voting power is not raised to 25% from its current 13%. He explained that he wanted the additional voting power in order “to be an effective steward of very powerful technology.”
So far this year, the shares have dropped 16% heading into today. However, TSLA stock had jumped 30% in the previous 12 months.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.