Tesla is preparing to release its first-quarter financial results, with investors on edge as the company faces multiple challenges, including a decline in deliveries, political controversies involving CEO Elon Musk, and a dip in stock prices.
Analysts are forecasting a 13% drop in deliveries for the first quarter, with Tesla losing ground to Chinese competitors. The electric vehicle giant’s stock has taken a hit, nearly halving from its peak in December, closing at $227.42 on Monday.
Musk’s high-profile political role as an advisor to former U.S. President Donald Trump has resulted in protests, boycotts, and a tarnished public image for the company, particularly in major markets like China and California, Tesla’s largest U.S. market.
The company will also address its plans for an affordable Model Y crossover and driverless robotaxis. However, production of the Model Y has been delayed, and concerns about driverless technology have raised regulatory challenges, potentially affecting the timeline for Musk’s promised robotaxi service launch in Texas.
Additionally, U.S.-China trade tensions have added another layer of uncertainty, with Tesla pausing some China-sourced component imports due to increased tariffs, further complicating production schedules.
With these factors in mind, investors will be closely watching the upcoming earnings call to see if Musk provides further insight into his plans for the company and if Tesla’s strategies can overcome these setbacks.
