Tesla’s stock has fallen 36% this year after a disastrous first-quarter sales. It can reduce
Tesla (NASDAQ: TSLA) I’ve been under a microscope this year. One big question has been about the appearance of first-quarter delivery. Multiple reports suggest that this could be a tough quarter for Tesla, with analysts lowering their estimates. However, Tesla delivered less than 337,000 in the first quarter, which is Wall Street’s estimate. Delivery volumes fell 13% year-on-year and were at their lowest level since 2022. The growth of competition and the negative impact of Tesla CEO Elon Musk and its role in the Department of Government Efficiency (DOGE) appear to be the main culprits. Anyway, stocks have fallen more than 35% this year (as of April 4), but can continue to decline. This is why.
Tesla’s core business is manufacturing and selling electric cars, and this business seems to be feeling the heat. Tesla has seen sales in Europe and China decline as electric car sales appear to have risen. Some of these can certainly be attributed to the rising competition in the EV sector. For example, Chinese electric vehicle manufacturers Bit It seems to be making money for Tesla. The company has faster charging technology and cheaper vehicles. Byd sold 32% of China’s new electric car sales in 2024, while Tesla sold slightly more than 6%.
But the other elephant in the room is Musk’s role on the political stage and increasingly outspoken role. At first, it was difficult to measure the impact. However, analysts and top investors are increasingly convinced that Musk’s role in the Governor and frequent posts about politics play a role in negative performance.
According to data from car shopping site Edmunds, Tesla owners have been trading on Teslas as Musk participates with Doge, and in the record clip, other dealers have switched new or used cars at other dealers. Reports on Tesla’s car vandalism may also prevent people from buying or possessing Tesla.
At this time, investors were very worried. “…The Tesla brand was heavily polluted at this time. It caused losses.” After the poor results, Tesla Bull Dan Ives, an analyst at Wedbush, was bullish for a long time, but called the situation in the “brand tornado crisis moment.”
Media reports have recently surfaced that Musk is planning to stay away from his involvement with Mano, although Musk and the White House have rejected the claims hours after their initial reports. Before running Mendouge, investors often questioned whether Musk could balance Tesla’s CEO and run several other companies, including X (formerly Twitter) and SpaceX. These issues have become more frequent and bigger since Musk began working with Doge, and have been struggling with Tesla’s performance.
