Tesla (nasdaq: tsla) has just dropped a difficult quarter on investors and the real question is now: how much worse can it become? Deliveries of the first quarter should be missed by a wide margin of 90,000 cars, estimates from 470,000 vehicles to only 380,000 in the final section. It is not a small miss is a flashing red light. But it is not unprecedented. We have already seen this film. When expectations made its doors at the beginning of 2024, Tesla’s shares dropped by 30%, then 30% after the arrival of the final figures. If the deliveries end below 350,000 this time, the story could repeat itself. But if the number is greater than 360,000, investors can obtain a withdrawal and a recalibre shot for the rest of 2025.
Meanwhile, Tesla is dealing with more than a simple request. A fire attack suspected of a concessionaire in Rome burnt down 17 vehicles, which prompted the Italian Minister of the Interior to suggest an anarchist-antagonist reason. Elon Musk has not lost time, qualifying the terrorism of X. The authorities have not confirmed this, but one thing is clear: the backlash is brewing. From Berlin to California, Tesla locations have been vandalized in recent months partially powered by Musk’s vocal political positions. His public support for controversial characters and calls for the withdrawal of NATO arouses more than social media drama. They are starting to spread in real risks for the brand.
Add this to European sales in ruins 37% in France last month and you have a discomfort. Wall Street still sees 1.9 million deliveries for 2025, but this is already down 2.1 million a few months ago. What investors want now is not another title. It is stability. A solid delivery number, less downward revisions and less volatility from the summit. Because at this stage, Tesla does not only need to resolve her request that problem must correct her story.
This article appeared for the first time on Gurufocus.
