Tesla's stock price has tumbled 12% so far this year.
Its valuation is lagging behind the other "Magnificent Seven" Big Tech stocks.
Slowing global EV sales and Elon Musk's stance on AI have left the EV maker trailing its rivals.
Shares of the company have tumbled nearly 12% over the first two-and-a-half weeks of the year in a skid that's wiped out $91 billion in market capitalization, according to data from Refinitiv.
That plunge means Tesla now trades at a valuation of under $700 billion – way below the rest of its peers.
As impressive as Tesla's meteoric rise has been, its early 2024 slump is a reminder that it doesn't always make sense to lump the carmaker into a group with the US's other Big Tech behemoths, according to analysts.
Tesla's start-of-year skid has come despite it capping off 2023 by posting fourth-quarter delivery numbers that topped Wall Street's expectations.
Although the company lost its place as the world's top EV seller to China's BYD, it shipped a record 308,600 cars over the three months ending December 31, taking its total deliveries for the year to over 930,000.
But rather than seeing those numbers as a reason to be cheerful, shareholders are fretting about the risk of weaker future sales. Legacy automakers like Ford and GM have struggled to drum up demand for their own EVs, and economists are forecasting a slowdown in global growth that's expected to drag on consumer spending.
"I think the market is trying to price in growth rates for next year and might be assuming that slowing EV sales will translate to slowing Tesla sales," Seth Goldstein, an equity strategist for Morningstar who chairs the firm's electric vehicles committee, told Business Insider.
"Because Tesla is such a high-growth stock, even small revisions downward can have a large impact on its valuation," he added.
Tesla's stock price have now slid almost 27% from a peak of $299.29 reached last summer.
Read the original article on Business Insider