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For this year, Tesla's stock price has fallen by 26.5%, making it the worst-performing stock among the "Big Seven."

On Thursday, Tesla's stock closed down 12%, marking its largest drop in over a year. The market value evaporated by $80 billion, and since entering 2024, Tesla's market value has cumulatively lost about $210 billion.

The day before, the company warned that this year's sales growth would be "significantly lower" due to weak demand, intensified competition, and persistent high interest rates that have undermined the effects of a series of price reductions.

Tesla's revenue and earnings announced on Wednesday were below market expectations. Tesla's automotive business revenue is a closely watched indicator, with the company's total revenue in the fourth quarter of 2023 being $21.6 billion, growing by only 1% year-over-year.

But the most concerning aspect is Tesla's outlook. Musk stated that the company is preparing to start production of a new low-cost car in the second half of 2025, a plan first proposed five years ago, which will use "revolutionary manufacturing technology" to reduce the cost of the model.

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The electric vehicle manufacturer said that as the company commits to launching the "next-generation car" in Texas, the growth in car sales in 2024 "may be significantly lower" than the pace observed last year. The company cautioned investors that it "is currently in between two major growth waves."

After years of rapid growth, Tesla's latest earnings reflect concerns about a stagnation in global electric vehicle demand and indicate that the world's most valuable automaker has entered a new era of declining sales growth and profit margins.

Musk said in a conference call with investors and analysts:

"We don't have a crystal ball, so it's hard to predict accurately. If interest rates drop quickly, profit margins will be good; if they don't, profit margins won't be as good."

Although the stock doubled in 2023, Tesla's stock has fallen by 26.5% this year, making it the worst-performing stock among the "Big Seven" this year. In recent months, despite its peers soaring to record highs, the company's stock price has continued to decline, with a 16.3% drop so far this year.Currently, investors betting against this stock are making a fortune. Data from financial analysis firm Ortex Media shows that short sellers have made over $2 billion from Tesla since Wednesday's close. The stock has fallen 27% this year, after more than doubling in 2023.

Tesla delivered 1.8 million vehicles last year. Facing increasingly fierce competition from Chinese car manufacturers like BYD and traditional automakers, the company has been lowering prices in major global markets such as Europe and China, which has affected Tesla's profit margins.

Musk said in a conference call that he "saw a path to creating a truly massive artificial intelligence and robotics giant" and that "Tesla could become the world's most valuable company one day."

However, several major banks have lowered their price targets for Tesla. Barclays reduced its target price for Tesla from $250 to $225, adding pressure to Tesla's stock price. Barclays analysts wrote in a report on Thursday:

"It's not as bad as feared, but the cloudy road ahead currently exacerbates Tesla's downside risks."

RBC analysts lowered their target price from $300 to $297. Canaccord Genuity said in a report on Wednesday that it would also lower its target price for Tesla from $267 to $234.

Earlier this month, Musk posted on social media platforms asking to hold more shares of Tesla in exchange for Tesla developing artificial intelligence products in electric vehicle manufacturers. He said he needed to own 25% of the company and said that if his request was not met, he would seek joint ventures outside of Tesla. In addition to autonomous driving technology, Tesla has also been developing a humanoid robot called "Optimus."

When asked about the post by investors, Musk said he was worried that he might be "voted out by some random shareholder consulting firm."

"I want to be an effective manager of very powerful technology," he said. "25% is not enough to control the company when I'm crazy, but it's enough to give me a strong influence."

After selling most of his Tesla shares to acquire Twitter (and renaming it X), his stake in Tesla has dropped to about 13%.