Premier EV maker Tesla is having a tough start to 2024.

Already it looks like Chinese competitor BYD is ascendant, surpassing Tesla in the big market that is China and set to be a force in developing countries.

The bitter U.S. winter has seen Tesla owners unable to recharge their vehicles as the big chill stops them in their tracks.

Legacy car makers Ford and GM are re-evaluating their EV production as Tesla grapples with charge times, range and technology.

Has Tesla reached an inflection point with motorists reconsidering the whole EV thing?

It was trendy and cute at first but now reality bites

Many are also asking whether Tesla is overvalued and must now be regarded as a car company experiencing falling margins.

Yesterday, Tesla’s share price fell by 12 per cent, eviserating US$80 billion from its market cap.

In an earnings call earlier this week, it disconsolately announced that its sales growth this year,” may be notably lower.”

It looks like a tall order as to whether Tesla can now make that targeted annual growth rate of 50 per cent over the next few years. Elon Musk may very well have to pivot to lower-cost vehicles.

The fact remains, Tesla’s profits are under pressure.

Analysts are now getting on Musk’s case and asking whether he can turn things around.

“We were dead wrong expecting Musk and the team to step up like adults in the room on the call and give a strategic and financial overview of the ongoing price cuts, margin structure and fluctuating demand,” wrote Wedbush analyst Dan Ives.

Speaking with Our Today from New York , Mark Kappart said: “ It’s looking a bit grim for Tesla right now but you wouldn’t want to bet against Elon Musk. We now know that Tesla is recalling around 200,000 vehicles due to a software issue. This comes after it had a recall of 2 million vehicles in December over defects with its Autopilot.

“For the fourth quarter, adjusted net income came to US$2.48 billion against the expected US$2.61 billion. Tesla will have to step up its vehicle deliveries and will have to make a mark in the SUV and truck segments. We still need to hear more about its Cybertruck.”

Musk has announced that he needs even greater control at Tesla and that this isn’t the time for shareholders to give him the thumbs-down.

“I could be voted out by some random shareholder advisory firm. A lot of activists infiltrate shareholder rights organisations. I’m not looking for additional economics. I just want to be an effective steward of powerful technology.”