With shares already down over 20% year to date, (NASDAQ: TSLA) has been off to a rocky start in the new year. Its challenges came to a head after the company reported fourth-quarter earnings, and CEO Elon Musk announced vehicle volume growth will be notably lower in 2024 -- continuing the worrying trend that plagued the company in 2023.

Unfortunately for investors, Tesla's problems run quite deep and will need a long time to solve. Let's explore some of the reasons why investors should be increasingly cautious with the stock.

Around the world, governments have been pushing the transition to electric vehicles (EV). The EU wants to phase out all emissions-producing cars by 2035, while China wants EVs to represent 40% of new car sales by 2030. But while automakers have raced to satisfy government objectives, perhaps too little attention has been given to what consumers actually want, leading to EV supply outstripping demand as margins deteriorate due to excess competition.

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Source Fool.com