Tesla Inc.’s shares have been on a rollercoaster ride recently, with a nearly 19% drop in the past seven days. Investors are growing increasingly worried about the company’s future, particularly with concerns about CEO Elon Musk potentially changing Tesla’s strategy. This fear has caused the stock to plummet 43% this year, reaching a 15-month low.
One of the main worries among analysts is the possibility of a delay or cancellation of a cheaper Tesla model in favor of focusing on developing a fully self-driving vehicle. This, along with Tesla’s slowing growth, thinning margins, and disappointing vehicle deliveries, is contributing to investor concerns.
Expectations for Tesla’s first-quarter earnings have been significantly lowered, setting a high bar for the company’s stock price. Options trading indicates an 8% move in either direction following Tuesday’s earnings report, with demand for short-term put options surging as investors brace for a potential stock decline.
Analysts are warning that a disappointment in earnings could cause Tesla’s stock to drop to $100, further fueling investor anxiety. The company’s rocky performance is part of a larger trend in the tech industry, with Apple facing challenges in China, Snap focusing on the upcoming US elections, and Ocado seeing growth in the UK grocery sector.
As Tesla prepares to report its earnings, all eyes are on the electric carmaker as investors brace for what could be a make-or-break moment for the company’s stock.
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