- Tesla shares dropped almost 6% on Monday, a day ahead of the company’s first-quarter earnings report.
- Investors are seeking answers about CEO Elon Musk’s plans for the automaker, as he spends much of his time with the Trump administration, slashing the U.S. federal government.
- The company’s stock is now down 44% for the year thus far after wrapping its worst quarter since 2022 in March.
Tesla shares fell almost 6% on Monday, a day ahead of the electric vehicle company’s first-quarter earnings report, as analysts fret over “ongoing brand erosion.”
The stock closed at $227.50 leaving it less than $6 above its low for the year on April 8. The shares are now down 44% for the year after wrapping up their worst quarter since 2022 in March. It’s the 12th time this year the stock has dropped by at least 5% in a single session.
CEO Elon Musk’s many distractions outside of Tesla, especially his role within the Trump administration, are in focus, along with the company’s progress on a long-delayed robotaxi and self-driving technology for its existing cars.
In the online forum that Tesla uses to solicit investor inquiries in advance of its earnings calls, more than 300 questions were submitted pertaining to Tesla’s self-driving systems, around 200 came in about the company’s Optimus humanoid robots in development, and more than 160 questions poured in about Musk individually. One investor asked, “What steps has the board of directors taken to mitigate the brand damage caused by Elon’s political activities?”
After spending $290 million to help return Trump to the White House, Musk is now leading an initiative to slash tens of thousands of federal jobs, sell off or end leases for federal office buildings, and reduce U.S. government capacity.
Musk’s politics and antics have elicited a massive backlash in Europe and parts of the U.S. This year, the company has been hit with waves of protests, boycotts and some criminal activity that targeted Tesla vehicles and facilities in response to Musk.
Earlier this month, Tesla reported 336,681 vehicle deliveries in the first quarter, a 13% decline from the same period a year earlier.
Source: https://www.cnbc.com/2025/04/21/tesla-shares-tumble-ahead-of-first-quarter-earnings-report.html