From Fortune:

Tesla shares sunk over 12% after CEO Elon Musk expressed concerns over competition from Chinese electric-car makers. This is on top of decreased sales estimates for 2024 and uncertainty about Fed interest rates, causing an $82 billion hit to Tesla’s market value on Thursday. And recently, Tesla has lost its standing as the world’s biggest EV maker to Chinese Warren Buffett–backed carmaker BYD. The EU is also looking into raising tariffs on Chinese automakers, which Ursula von der Leyen accused of benefiting from large state subsidies that keep their prices “artificially low.” Meanwhile, Tesla is looking to launch a lower-cost model and is open to licensing and partnerships with Chinese companies for self-driving technology and other advancements. The drop in Tesla’s market value almost equals GM and Ford’s entire valuations, already prompting questions about whether the stock is still a good deal. With Tesla’s net earnings rapidly declining and a lofty price-to-earnings ratio, its stock faces a steep climb to recover, even as Musk seeks to increase his Tesla equity for his services with AI development. This move could dilute current shareholders and hinder potential gains even further.



Read more: Tesla loses $82 billion in market value after Elon Musk’s warning about Chinese EVs—and the path forward is daunting