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Tesla's nightmare and Eli Lilly's 140% boom: Unbelievable twists you can't miss!

Tesla's nightmare and Eli Lilly's 140% boom

The deceleration in Tesla's electric momentum has had a substantial impact, coinciding with a heightened interest in medications targeting obesity. Among the notable beneficiaries is Eli Lilly, a company experiencing a surge in its stock value on the market. Consequently, its business is currently being assessed at several billion dollars more than the valuation of the automotive giant.

The year 2023 witnessed weight-loss drugs emerging as a trend, captivating not only individuals aspiring to shed excess weight but also investors. The shares of Eli Lilly, particularly after the introduction of the drug Zepbound to the market at the close of the preceding year, have experienced a pronounced upward trajectory.

Eli Lilly's standing in the business realm is now appraised at 595 billion dollars by the market. This marks a notable 10% surge within a month and an impressive nearly 40% ascent over a span of six months. Over the preceding 12 months, the market capitalization has seen a remarkable 80% growth. In terms of market value, Eli Lilly has recently surpassed Elon Musk's Tesla.

While investors are driving up the stocks of the new weight-loss drug manufacturer, those associated with electric vehicle production are witnessing a decline. Thursday, in particular, saw a significant 12% dip. Consequently, Tesla's market valuation contracted to 581 billion dollars, a figure 14 billion dollars lower than the market capitalization of Eli Lilly.

The setback for Musk at the hands of stock market investors follows the disclosure of Tesla's disappointing results. For the second consecutive quarter, the company fell short of profit projections, having previously established a pattern of exceeding expectations.

The quarterly revenues amounted to 25.2 billion dollars, reflecting a meager 3% growth compared to the corresponding period in the previous year, despite an increase in deliveries. Industry experts interpret this as an indication of the repercussions of lower average selling prices resulting from multiple price reductions.

In response to the results, Elon Musk conceded that Chinese manufacturers stand out as the most competitive globally. "If no barriers are introduced, they can demolish most car manufacturers in the world. They are incredibly good," remarked the CEO of Tesla.

Quoted analysts assert that Elon Musk's actions have significantly deterred investors, and the process of swiftly regaining their trust appears challenging. Conversely, the outlook for Eli Lilly is considerably more optimistic. Recently, Goldman Sachs projected that the company's stocks could witness a substantial 140% increase by the year 2028.


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