Tesla (TSLA, Financial) shares dropped nearly 6% to $227.50, just before the release of its first-quarter earnings report. Analysts are concerned about Tesla's brand image, which has been affected by CEO Elon Musk's political activities, including his involvement with the Trump administration. This year, Tesla's stock has fallen 44%, marking its worst quarterly performance since 2022.
Investors are particularly worried about Tesla's delayed projects like robotaxis and autonomous driving technology. In an online forum, over 300 questions were submitted regarding Tesla's autopilot system and the Optimus humanoid robot. Some investors questioned how the board is addressing the brand damage caused by Musk's political engagements.
Tesla reported a 13% year-over-year decline in vehicle deliveries for Q1, with expected revenue of $21.24 billion and earnings per share of 40 cents. Analysts are also concerned about the impact of Trump's tariffs on Tesla's profits and potential demand weakening.
Barclays downgraded Tesla's target price from $325 to $180, citing weak fundamentals. Analysts suggest that if Musk focuses more on Tesla's core business, the market could respond positively. Tesla plans to provide "real-time company updates" alongside its earnings report.
