Rewind back to December 2024, Tesla was sitting at an all time market cap of 1.54 trillion dollars and its stock was trading at almost 480 dollars a share. Its market cap was more than Ford, Honda, Volkswagen and Ferrari combined. At that time If you asked controversial CEO and founder Elon Musk about his predictions for earnings in 2025 I am sure he would have been buoyant. However a few months can bring seismic change in the business world. As the Tesla Q1 earnings report approaches the company and its investors brace for impact.
Doom and Gloom
Only three months after their peak Tesla’s stock has dropped 45%. Tesla will release its deliveries report on April 2nd, it is predicted they will only have produced approximately 377,000 vehicles, a significant fall from this time last year.
This will be shortly followed by Tesla’s Q1 earnings report which is set to be released on April 22nd. These worrying statistics are a result of a myriad of problems. The first being the ongoing backlash against Musk’s political activism and unwavering support of Republican President Donald Trump. This has been met with widespread boycotts, protests and vandalism of Tesla property and products. Last Saturday saw yet further anti-musk protests as the mounting pressure has stated hitting Tesla’s bottom line.
Sales in free fall
The next issue facing the EV pioneer is its alarming sales figures. While global EV sales continue to grow, Tesla experienced significant global sales decline with steep drops in key markets. In Germany, sales plummeted 76.3% year-over-year to only 1,429 units, even as the country’s EV market grew by 30.8%. Australia saw a 71.9% decline, with just 1,592 deliveries compared to 5,665 a year earlier. Similarly, in China, sales of Tesla’s locally manufactured vehicles fell by 49.16% to 30,688 units, as competition from domestic EV makers like BYD intensified.
All this culminates in an anxious wait for those invested in Tesla’s success as it is hard to imagine that the Tesla Q1 earnings report will alleviate any reprieve.
Sources
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