Tesla is experiencing significant market pressure as analysts revise down their earnings estimates, citing weaker vehicle delivery numbers and growing concerns about brand perception. The automaker’s first quarter deliveries fell to 336,681 units, marking the lowest quarterly total since 2022 and falling short of expectations.
JPMorgan Chase analysts have reduced their earnings forecast for Tesla’s first quarter to $0.36 per share, down from a previous projection of $0.40. Full year earnings estimates have also been trimmed to $2.30 per share, reflecting a more challenging outlook for the electric vehicle leader. This represents a decline from the consensus forecast of $2.70, which has been lowered significantly since January. Tesla’s struggles have been exacerbated by CEO Elon Musk’s increasing involvement in global politics, which has led to polarization among consumers. Sales in Germany, home to Tesla’s sole vehicle assembly plant in Europe, plunged by 62% last quarter a worrying indicator for the automaker’s regional performance.
In addition to political factors, production changes for the redesigned Model Y have impacted Tesla’s operations. These factors have raised concerns about the company’s ability to recover in the near term. Despite the challenges, Tesla remains a dominant force in the electric vehicle industry, and its innovations continue to shape market trends.