A first quarter to forget for Tesla shareholders
EV automaker and Magnificent Seven member Tesla (TSLA) has had a rough first quarter, losing almost 30% year-to-date. The company has been hit with many challenges from recalls to price cuts and leadership concerns around CEO Elon Musk.
Yahoo Finance Reporter Pras Subramanian joins Market Domination Overtime to break down the latest developments for Tesla.
For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.
Editor's note: This article was written by Nicholas Jacobino
Video Transcript
- It's the last trading day of the first quarter, and Tesla is having a rough start to the year. That stock is now down about 30% so far in 2024. Our own Pras Subramanian Iranian is here to walk us through what is worrying investors. Prize.
PRAS SUBRAMANIAN: Yeah, you know, S&P, of course, up 10%, so a huge swing there between and Tesla is the worst performing S&P stock. So, it's really tough times for investors and analysts. And I kind of did a little piece where we looked at three big things that really hurt Tesla this quarter and really first let off with that warning about the year about the deliveries, how they had they would say, quote "there's significant concern" about how much we can grow, and that was a big kind of red flag there for a lot of analysts, investors concerned about there's no particulars, no specifics on.
Are you going to give us any kind of number we can look at or percentage growth rate? Didn't have any of that. And then also, of course, China, off the bat they had to do these big price cuts again following last year. A lot of other automakers are doing that. The Chinese government concerned about price wars.
And then, just last week, they actually reports of cutting production at that factory in Shanghai. So that was also another bad mark there for Tesla. And finally, Elon Musk, I mean what's he been doing besides asking-- basically saying I want to hive off AI from Tesla. I want to-- I'm comfortable growing that business within the company without x percent share interest in his company.
And then he got that pay package invalidated, says, I want to move the incorporation state to Texas. It's a lot of stuff like that have been sort of weighing on the stock, and it just was not-- it was a quarter to forget basically for Tesla.
- I mean we had Dan Ives on earlier saying just rip the Band-Aid off. You have to wonder how much of this is about the unknown for investors just coming clean, presenting the bad news, but actually having a path forward. We'll see.
PRAS SUBRAMANIAN: Yeah, I think I was one of those guys who was complaining about the call being lacking specificity-- specificity-- on those numbers.
- But to your point, that's what he was banging the table on.
PRAS SUBRAMANIAN: Yeah.
- Yeah, those details.
PRAS SUBRAMANIAN: He could say the word, though. I can't say it.
- Yeah. Pras, thanks so much.
