Shares of the EV maker are down more than 35% this year, giving back a good chunk of the massive gains it saw in 2023. Meanwhile, most of its Magnificent 7 peers have continued their 2023 hot streaks.

Tesla’s been good to its longtime investors. It’s up more than 900% over the past five years, far outstripping the S&P 500 index (72%). And the stock has bounced back from volatility before. Tesla’s incredible 2023 was preceded by a 65% drop in share price during 2022.

But external factors make this year’s comeback more daunting.

Demand for EVs in the US is slowing down, and China is proving to be a more prominent rival than Musk previously believed. Even worse, people who are in the market for EVs aren’t necessarily interested in Teslas.

Big, expensive EVs aren’t what customers want. And that’s an issue for a company whose newest vehicle is a big, expensive EV.

Yet, despite a long list of recent setbacks, there is some good news buried amid the carnage: EV sales data shows Tesla has outpaced all competitors in the US electric vehicle market lately, growing its market share to 51.3%.

Meanwhile, Musk is at the center of it all. The polarizing billionaire is embroiled in several feuds, including with Tesla. And now his latest endeavor, an AI startup, is reportedly pulling talent away from the EV maker.