Tesla shares fall amid delays, distractions and fading EV dominance

Mitrade
coverImg
Source: DepositPhotos
  • EV incentives cut, tariffs and delays deepen investor concerns

  • Tesla reports worst quarterly sales decline in over a decade

  • Company gives no update on annual deliveries forecast

- Tesla's TSLA.O shares sank nearly 7% in premarket trading on Thursday as the EV giant grapples with sinking sales and mounting doubts over its future under CEO Elon Musk, deepening investor anxiety after another shaky quarter.

Musk warned of a "few rough quarters" ahead for Tesla, as cuts in U.S. EV incentives compound its challenges. The automaker reported one of its most difficult quarters in over a decade, marked by a second consecutive revenue slide.

This comes amid slumping EV sales, tariff pressures and fresh controversies around Musk, fueling turbulence for the company at a time it can least afford it.

Tesla is working on a cheaper model, but Chief Financial Officer Vaibhav Taneja said production would ramp up next quarter, slower than initially expected. The company gave no update on its annual deliveries forecast, citing the economy and uncertainties looming over its rollout plans.

"Tesla is crossing the chasm to autonomy while absorbing slower volume, EV incentive elimination, tariffs and investing in new initiatives that may not make margins for years," analysts at Morgan Stanley said.

The company's trillion-dollar valuation hinges on its robotaxi ambitions, a small trial of which was started in Austin, Texas, last month with about a dozen Model Y SUVs, and its push to build humanoid robots.

Despite a recent facelift for its flagship Model Y, Tesla's aging lineup is facing the heat from a wave of low-cost EV rivals, especially in China, and ongoing blowback over Elon Musk's far-right political views.

"Musk is the face of Tesla, and for many people, the brand can't exist outside of his influence. So, when his credibility and trust decline, so does the equity of the Tesla brand", said Daniel Binns, Global CEO at Elmwood.

"In parallel, we've seen the EV market rapidly mature and Tesla is no longer the shining star," Binns added.

Tesla's stock is down about 18% so far this year, making it the worst performer among the "Magnificent Seven" stocks.

Read more

  • Gold falls amid easing trade tensions, profit-taking 
  • Bitcoin Price Forecast: BTC falls below $108,000 amid economic uncertainty, ETF outflows
  • Japanese Yen advances following Trade Balance data
  • Why the Altcoin Market Cap Decline May Deepen in October
  • EUR/USD picks up amid a brighter sentiment ahead of the US NFP release
  • UK CPI expected to rise in September, supporting BoE’s hawkish stance 
  • * The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

    goTop
    quote
    Related Articles
    placeholder
    Tesla Q3 Earnings Preview: Record Deliveries “Burn Out,” Growth Path Filled With UncertaintyTesla’s stock has rebounded over 85% in the past six months — the strongest recovery among the Magnificent Seven.
    Author  TradingKey
    8 hours ago
    Tesla’s stock has rebounded over 85% in the past six months — the strongest recovery among the Magnificent Seven.
    placeholder
    BitMine and Strategy Capitalize on Market Weakness to Expand Crypto PortfoliosAfter the October crash shook global markets, crypto assets continued their volatile run, with Bitcoin (BTC) and Ethereum (ETH) still below their pre-crash levels.
    Author  Beincrypto
    Yesterday 07: 37
    After the October crash shook global markets, crypto assets continued their volatile run, with Bitcoin (BTC) and Ethereum (ETH) still below their pre-crash levels.
    placeholder
    Japan stocks surge on historic appointment of Sanae Takaichi as first female PMSanae Takaichi became Japan’s first female Prime Minister after winning 237 votes in the Lower House.
    Author  Cryptopolitan
    Yesterday 06: 47
    Sanae Takaichi became Japan’s first female Prime Minister after winning 237 votes in the Lower House.
    placeholder
    "No Kings" Protests: If It Persists, Sell U.S. Stocks and Buy Gold1. IntroductionTradingKey - On the morning of Saturday, 18 October, large-scale demonstrations broke out in multiple U.S. cities, where people protested against Trump's policies. Rallies were held in
    Author  TradingKey
    Yesterday 03: 50
    1. IntroductionTradingKey - On the morning of Saturday, 18 October, large-scale demonstrations broke out in multiple U.S. cities, where people protested against Trump's policies. Rallies were held in
    placeholder
    Netflix Q3 Earnings Preview: Double Growth in Revenue and Profit Expected Amid Wall Street's Universal OptimismStreaming giant Netflix is set to release its Q3 2025 financial results after U.S. market close on Tuesday, October 21, with the current market sentiment largely optimistic.
    Author  TradingKey
    Oct 20, Mon
    Streaming giant Netflix is set to release its Q3 2025 financial results after U.S. market close on Tuesday, October 21, with the current market sentiment largely optimistic.
    Live Quotes
    Name / SymbolChart% Change / Price
    TSLA
    TSLA
    0.00%0.00

    Stocks Related Articles

    • Amazon Stock Analysis: How to Invest in Amazon Stock?
    • Best 15 ASX Lithium Stocks To Watch in 2024-2025 | Industry Overview & Stock List
    • GOOG vs GOOGL: What's the Difference? Which One Should You Buy?
    • What Is A Stock Dividend? Top 20 High-Dividend Stocks List For 2024
    • How To Buy Nvidia Stocks (NASDAQ: NVDA)? Are Nvidia Stocks Worth Investing In During 2024?
    • How to Invest in Stock Market for Beginners

    Click to view more