The shares collapsed more than 10% to US $ 214,800 in the midst of a generalized fall in world stock markets. Lutnick said during a Fox News interview on March 19, when Tesla closed to US $ 235,860, that spectators should buy the shares, saying that “they will never be so cheap again.” The executive director Elon Musk, told Tesla employees the next day that they had to keep their actions.
The last fall occurs after one of Tesla’s greatest optimists, Wedbush Securities Daniel Ives analyst cut its target price of action in more than 40%, arguing Trump’s commercial policies and a brand crisis created by Musk.
Tesla’s actions have fallen 50% since the historical maximum achieved in mid -December. The actions had risen after Trump’s electoral victory, which many expected it to be a blessing for the company, given Musk’s proximity to the then elected president. On the other hand, Musk’s participation in political controversies in both in the United States and abroad has repelled some cars buyers and has caused protests against the company.
Last week, Tesla reported vehicle deliveries in the first quarter that did not meet the expectations, which had reduced reducedly, falling to the lowest level since 2022. Ryan Brinkman, from JPMorgan Chase & Co., one of the most pessimistic analysts of Wall Street on the actions, said that the degree of reaction of the consumers and the “unprecedented damage to the brand”. Several analysts have reduced their sales and profit estimates of Tesla in recent weeks, even before the company reported the weak vehicle delivery figures.
And although Tesla is considered relatively isolated from 25% tariffs announced by Trump about imported cars, Musk has warned that the company will not be unharmed. “Tariffs in their current form will affect Tesla, the supply chain in general and its global presence, which has been a clear advantage over the years against ascent competitors such as Byd,” said Iives, of Wedbush, in a note to customers on Sunday. The biggest concern, according to Iives, is Tesla’s position in China.
First quarter balance
The deliveries of the first trimester of Tesla fell 13%, weighed by the increase in competition, the weak demand for its aging range of electric vehicles and a reaction against the political activities of its executive president, Elon Musk. The electric car manufacturer said it delivered 336,681 vehicles in the first quarter, below 386,810 units a year ago. Analysts expected Tesla to register some deliveries of about 372,410 vehicles in the January-March period, according to an average estimate of 15 Visible Alpha analysts, which reduced their forecasts in the last 30 days.
Its executive president, Elon Musk, promised to grow again after Tesla’s annual deliveries fell last year, but the diminishing demand for their aging range of electric vehicles and a reaction against their political activities could make it difficult to fulfill that promise. The role of Musk as an advisor to Donald Trump, has unleashed the discontent of customers.
