Actions of the electric vehicle manufacturer (EV) Tesla (Nasdaq: tsla) exchanged about 7% less at 1:03 p.m. on Monday. This sale came while tensions between the United States and China continued to degenerate and investors were attentive to the report on the results of the first quarter of Tesla, which is expected to be released after the market closed on Tuesday.
American actions fell largely on Monday morning after the Chinese government warned that it would retaliate against all countries that associate themselves in the United States on trade in an economically harmful manner. In addition, market observers highlighted President Donald Trump’s pricing policies and his latest social networks against the president of the Federal Reserve Jerome Powell as engines of the Wall Street slide.
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However, with regard to Tesla in particular, investors focus on the next report on business results. The manufacturer of electric vehicles has already revealed that its deliveries were low in the first quarter, but after months of controversial actions of the CEO Elon Musk in its role in the public sector, the call for the profits of the first quarter will offer analysts the possibility of asking him questions on subjects ranging from EV affairs in difficulty of Tesla to his new initiatives. It is also possible that they ask him questions about his involvement with the Ministry of Government Effectiveness (DOGE) and Trump’s prices.
Wedbush analyst Dan Ives, a longtime Tesla Bull, said Musk on Monday faced a “red situation of the code” if he does not start to distance himself from Trump and Doge. In a recent research note, Ives wrote that Tesla could face “the destruction of permanent demand potentially 15% to 20% … Due to the brand damage that Musk created with Doge”.
On Tesla, Musk will have to reassure investors on the Core EV activity, which seems to lose ground in China and Europe, as well as longer -term catalysts for the company such as cheaper models, full driving and robotics, for hopes to support the stock and justify its valuation of nose.
Many traders always believe that Tesla will be a generational company of artificial intelligence and that it will continue to change the world. These things could possibly prove to be true, but I prefer to avoid actions that are not negotiated according to their fundamental principles, especially when their main companies seem to lose steam.
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