Tesla shares drop $350bn since July

Enthusiasm toward Tesla has eroded significantly, with investors concerned over a lack of new catalysts that can propel the stock near term

The biggest cloud looming over the electric car giant is the slowdown in the demand for electric vehicles, which is happening just as competition from legacy carmakers and Chinese rivals is heating up. 

Tesla shares have shown signs of life in recent days after this year’s extreme slide, but investors lack the clarity needed to bet on any lasting recovery.

The electric vehicle maker is due to provide its first-quarter delivery numbers early next week and rapidly dropping estimates over the past month suggest a lacklustre report. More importantly, recent news flow implies tepid demand for its cars in coming months.