Investors are shifting from Tesla to Eli Lilly as the latter’s diabetes and weight loss drugs rake in huge profits.
Tesla’s market value dropped by $210 billion (27%) in the first five weeks of 2024, while Eli Lilly’s rose by $140 billion (23%).
Eli Lilly’s shares surged 5% on strong earnings fueled by $2.4 billion in fourth-quarter sales from its weight loss drugs, while Tesla’s dropped 2% due to analyst downgrades citing governance issues.
Tesla is the worst-performing S&P stock of 2024, while Eli Lilly ranks fifth-best. Eli Lilly’s rival, Novo Nordisk, also saw a significant increase in valuation, becoming Europe’s most valuable company.
Tesla’s challenges stem from disappointing earnings and governance concerns, while Eli Lilly benefits from its successful drug sales.
