Tesla’s stock plummeted nearly 6% the day before its first-quarter earnings report, inching closer to its lowest point this year.
On Monday, CNBC reported that Tesla shares closed at 227.42 USD on the New York Stock Exchange (NYSE), marking a 5.96% drop from the previous day. This decline brings the stock close to its year-to-date low, a staggering 44% decrease since January.
Tesla has been battling a perfect storm of challenges, including a tarnished brand image and the lingering effects of Trump-era tariffs. Investors are increasingly jittery about CEO Elon Musk’s political forays and the company’s setbacks in autonomous driving technology.
Tesla delivered 336,681 vehicles in the first quarter, a 13% year-over-year decline. Financial data firm LESG projects Tesla’s Q1 revenue at 21.24 billion USD, slightly down from the same period last year, with earnings per share hovering around 0.40 USD.
Oppenheimer analysts sounded the alarm, stating that Tesla’s brand is losing its luster in the U.S. and Europe, while the Chinese market is poised for intensified demand erosion and pricing pressures.
Wedbush Securities analyst Daniel Ives cautioned that Musk’s political activities could potentially slash Tesla’s long-term demand by 15-20%. Meanwhile, Barclays maintained its sell rating on Tesla, lowering its price target to 275 USD.
As investors brace for impact, Tesla is set to host a live company update alongside its Q1 earnings announcement, potentially offering insights into its strategy to navigate these turbulent waters.
