Tesla Stock Falling Sharply ahead of Vital Quarterly Report
Tesla stock could be heavily impacted by their first quarterly sales report coming on Tuesday after the closing bell.
Quick overview
- Tesla stock has fallen 6.82% on Monday, continuing a downward trend with a year-to-date decline of 40%.
- The upcoming quarterly earnings report is crucial for Tesla, as it may significantly impact the stock price.
- Sales have decreased due to political backlash against CEO Elon Musk and potential market saturation.
- Investors should prepare for a possible stock drop to $218 following the sales report, but future developments like a new affordable vehicle and driverless technology could improve prospects.
Falling 6.82% Monday morning as trading begins for the week, Tesla (TSLA) stock is continuing its downward spiral. So far this year, Tesla stock has dropped from $379 to $224.
With a 40% decline since the beginning of the year, Tesla stock is in a bad place. Its decent continued Monday morning, and the upcoming quarterly report will need to be very positive to help the company. On Tuesday, Tesla will be dropping its first quarterly earnings report. The expectation is that the report will cause the share price to shift quickly. The question is, however, in which direction?
What We Know about Tesla Sales
For the past few months, Tesla sales have been down significantly. Across the world, Tesla sales are way down, mostly spurred by backlash against the company’s CEO Elon Musk and his association with President Donald Trump. The protests, boycotts, and vandalism of Tesla vehicles has soared in recent months, but political dissent is not the only thing that has hurt the company’s sales.
Tesla has also sold so many vehicles in the past few years that they may have reached a level of market saturation that could make it difficult for them to see increasing sales from quarter to quarter any longer. In 2024, they delivered 124 million vehicles. They delivered over a million vehicles each year for the three years before 2024 as well, but it looks like their numbers will drop dramatically in 2025.
What Investors Should Expect
Historically speaking and looking at the data, traders should anticipate a move of 9.3% for Tesla stock in one direction or another after the sales data is released. Since that period is coming after Tuesday’s closing bell, we should see the impact of the report on Wednesday morning. The expectation is that the sales figures will not be very positive and that all the political backlash against Tesla will seriously hurt their numbers.
We may see Tesla stock move down to $218 on Wednesday as a result of the sales figures. That could put the stock into a nice price range for investors who expect the stock to perform well later on in the year. Looking down in 2025, we know that Tesla has a more economically priced vehicle coming in June of this year. They are also working on creating driverless car services but have run into a number of hurdles. If they can finally sort out the problems with that technology, their stock may benefit tremendously. They are looking at starting production on the driverless Robotaxi in 2026.
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