Proactive Investors - Tesla Inc (NASDAQ:TSLA, ETR:TL0) stock has fallen 13% so far this week and is set to continue the losing streak on Thursday.
Ahead of the market’s opening, shares in the Elon Musk-run company were down 1.8% at $173.33.
The latest news that investors are mulling is that the electric vehicle maker is no longer one of the 10 largest stocks in the US by market valuation after the slump this week saw it overtaken by Visa Inc (NYSE:NYSE:V, ETR:3V64) for the first time since January last year.
At the closing bell, Musk's company had a market cap of $562.24 billion versus Visa Inc at $563.37 billion.
Tesla shares are down around 29% in the year-to-date, wiping $228 billion from its valuation as investors fret about the impact of price cuts, China competition and trouble brewing in Germany.
Analysts are also turning against the stock.
Yesterday saw a downgrade by Morgan StanIey, which noted that China's EV market is "over-supplied", which is why the company joined a recent barrage of price cuts and is expected to see persistent price competition this year.
Its product line-up is now one of "the oldest of any major OEM", the bank noted, with nearly all of its lineup launched pre-pandemic.
Analysts at Baird said the price cuts and the choppiness of cost improvements imply that "margins may not have bottomed" and, indeed, are expected to retreat in the first quarter of 2024.