Tesla’s Stock Slides Ahead of Earnings Report

Tesla shares tumbled nearly 6% to close at $227.50 on Monday, dragging year-to-date losses to 44% just one day before its first-quarter earnings report. This marks the 12th session in 2025 with a drop of more than 5%, proving how uneasy investors are with the stock. 

Vehicle deliveries fell to 336,681 units in Q1, down 13% year-over-year, while revenue is expected to slip to $21.24 billion with projected earnings per share of $0.40. The numbers come amid broader concerns about CEO Elon Musk’s focus, as his deepening ties with the Trump administration stir political backlash and brand damage.

Musk’s controversial political involvement, including a $290 million campaign donation and policy efforts to cut federal jobs, has sparked protests, vandalism, and boycotts. 

In Tesla’s investor Q&A forum, over 300 queries revolved around self-driving technology, while another 160 directly targeted Musk’s impact on the brand. Sentiment data from Caliber shows just 27% of U.S. consumers would now consider buying a Tesla, compared to 46% in early 2022. 

Analysts at Oppenheimer warned that declining demand in China and a shift toward national brands could push Tesla to increase exports, driving down prices and margins. With Trump-era tariffs back in play, these external pressures could squeeze earnings even further.

What Does This Mean for Me?

Barclays recently cut its Tesla price target from $325 to $275, citing weak fundamentals and a lack of clarity heading into the quarter. Investors are watching closely for signs of refocus from Musk and strategic updates on Tesla’s Full Self-Driving rollout. Unless Tesla delivers a credible turnaround narrative, market confidence could remain on ice.