Shares of Tesla, Elon Musk's electric vehicle maker, hit their lowest level since May 2023 as the company continues to face a challenging year. The recent decline in Tesla's stock price, part of the ongoing selloff, has positioned the company below other major technology stocks in the market.

A recent report in The Journal has added to the mounting concerns surrounding Tesla. Wedbush analyst Dan Ives, speaking to Forbes, noted that the allegations outlined in the report have contributed to the stock's decline. This development has added another "black cloud" to Tesla's already troubled state.

Tesla shares have experienced a sharper decline this year compared to other notable companies such as Boeing and Archer-Daniels-Midland. Boeing's shares are down 21% amid safety controversies surrounding its commercial airplanes, while Archer-Daniels-Midland faces a probe into alleged accounting fraud, causing its shares to also dip by 21%.

The unpredictable nature of Elon Musk's influence on Tesla's stock market performance is not a new phenomenon. In 2022, the company saw a 65% selloff when Musk sold a significant portion of his Tesla holdings to fund his acquisition of the social media platform, now known as X.

In 2024, Tesla's fortunes have fared worse than other members of the prominent "magnificent seven" tech stocks, whose valuations soared last year. Apple, the only other member of this group experiencing a decline in shares, has seen a more modest 2% decrease. Both Tesla and Apple are the only companies in this group that did not report double-digit sales growth in the last quarter.

Tesla's profits declined by 23% from 2022 to 2023, and analysts are projecting negative bottom line growth again this year, according to FactSet. These factors further add to the challenges faced by the company.

Despite the setbacks, Elon Musk's position as the world's second-richest person, with a net worth of $195 billion, remains unchanged for now. However, his net worth has decreased by approximately $55 billion due to the drop in Tesla's stock price and the cancellation of a $51 billion Tesla stock-based compensation plan by a Delaware judge.

As Tesla navigates through these difficulties, the company will need to address its declining profits and work towards regaining investor confidence in order to reverse its current trend in the stock market.