/shutterstock_2394150809.jpg)
The electric vehicle (EV) industry is experiencing significant growing pains in 2024, and even previously undisputed market leader Tesla (TSLA) is feeling the sting. As concerns over lack of supply have shifted to concerns over flagging consumer demand, the ongoing EV price war has compressed margins industry-wide. Unable to keep up with the constant cash burn, some EV startups are even folding altogether.
As for Tesla specifically, investors and analysts alike were unimpressed by the company's forecast for slower volume growth this year, as well as the uncertain timeline for the new model launch that's expected to drive future upside. Plus, amid a slowdown in the Chinese economy, hometown rival BYD (BYDDY) is starting to eat Tesla's lunch on the mainland.
