The CEO of Spacex, Elon Musk, attends a cabinet meeting held by the president of the United States, Donald Trump, at the White House on March 24, 2025.
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Tesla The actions fell almost 6% on Monday, one day before the profit report of the first quarter of the electric vehicle company, while analysts face the “erosion of the current brand”.
The action closed to $ 227.50, leaving it less than $ 6 above its minimum for the year of April 8. The shares have now dropped 44% for the year after completing their worst quarter since 2022 in March. It is the twelfth time this year that the action has decreased by at least 5% in a single session.
The many distractions of CEO Elon Musk outside Tesla, especially their role within the Trump administration, are focused, along with the company’s progress in a robotaxi and autonomous technology for a long time for its cars.
In the online forum that Tesla uses for Platicit invested before their earnings, more than 300 questions were subtinating to Tesla’s self -control systems, around 200 were produced on the competition, and and robots in development robots in individual development robots. An investor asked: “What steps do the tasks of the Board of Directors have to mitigate the damage of the brand that is based on Elon’s political activities?”
After spending $ 290 million to help Trump return to the White House, Musk now leads an initiative to reduce tens of thousands of federal jobs, sell final leases for federal office buildings and reduce the ability of the United States government.
Musk’s policy and mischief have chosen a massive reaction in Europe and parts of the United States this year, the company has been beaten with waves of protests, boycots and some criminal activities that went to Tesla vehicles and facilities.
Earlier this month, Tesla reported 336,681 vehicle deliveries in the first quarter, a 13% decrease in the same period of the previous year.
The company is expected to report income of $ 21.24 billion for the first quarter, according to LSE, which would mark a slight fall of the same period last year. Analysts expect profits per action of 40 cents. Investors will pay particularly close attention to any comment on the generalized Trump tariffs and the potential impact on income and profits as the year progresses.
Oppenheimer’s analysts wrote in a note on Monday that the “erosion of the current brand” for Tesla in the United States and Europe already weighs on sales, but a “greater problem for the company is the potential weakness in China’s demand and the impact on the margin due to Trump’s rates.”
They wrote that competition in China, together with the trends of “nationalist” consumers there, could “boost sales to national brands.” Tesla would have to export more of his cars made by China, which could lead to “descending pressure on prices,” Oppenheimer’s analysts said.
Caliber, a research firm that tracks how the feeling of US consumers. It is changing around the main brands, found that only 27% of their respondents in March would make the purchase of a Tesla, compared to 46% in January 2022.
The Wedbush Securities analyst Dan Iives, a Tesla bull for a long time, awaits a “vision of change” of Musk in the winning call on Tuesday.
“Tesla has now unfortunately become a worldwide political symbol of the Trump/Dux Administration,” Hey, pointing out that “Tesla’s actions have been crushed since Trump turned around the White House.”
IVE estimated from 15% to 20% “destruction of permanent demand for future Tesla buyers due to the damage to the brand that Musk has created” when working for Trump.
At the end of last week, Barclays maintained the equivalent of a sale rating and reduced its target price in Tesla to $ 275 from $ 325, citing a “confusing configuration” in the first quarter with “weak foundations.” The firm said it could see a positive reaction if Musk is more focused on its automobile manufacturer, and depending on what the company reveals about an anticipated “FSD event, referring to the full autonomous driving offer of Tesla.
Tesla said that by announcing its reporting date, in addition to the profits, it will provide an “update of the company live”, a language that the company has not used in disseminations.
Look: Why investors are divided into Tesla’s turn towards robots and self -employed cars
