Tesla's Tumultuous Turn - How A $80 Billion Vanishing Act And A Stubborn $200 Barrier Are Redefining Investor Confidence In 2024

• In January 2024, Tesla's shares experienced a sharp 24% decline.
• The discrepancy in Tesla's Q4 earnings led to a loss of investor confidence, causing an 8% drop.

Investors have been closely eyeing Tesla Inc's TSLA recent financial performance, which has become a focal point. The electric vehicle giant reported a staggering $97 billion in revenue in 2023. However, with the arrival of 2024, a series of challenges have emerged, significantly impacting Tesla's market position.

In January 2024, Tesla faced a pivotal moment as its shares took a sharp decline of over 24%. The primary cause of this downturn was the anticipation of weaker sales growth for the year. The impact of this decline was substantial, erasing approximately $80 billion from Tesla's market value.

Tesla's Q4 earnings release on January 24 added to the company's existing challenges. The earnings report disclosed that the actual earnings per share were $0.71, falling short of the estimated $0.74.

This seemingly small difference had a notable effect on investor confidence. Consequently, Tesla's stock price plummeted by 8% as trading commenced the following day. This resulted in the stock price dropping below $200. The last time the stock was at this level was in May 2023.

The Q4 earnings report has left Tesla's stock in a state of uncertainty and struggle, with consistent failure to recover beyond the $200 level. This particular price point seems to act as a psychological barrier, preventing the stock price from advancing forward.

The resistance level at $200 hints at a cautious stance on Tesla's stock. Should the stock be unable to break through, it could signal the possibility of additional declines.

After the closing bell on Thursday, February 8, the stock closed at $189.56, trading up by 1.06%.

This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.