The stock fell, prices fell, and employees had to leave. The electric vehicle manufacturer is expected to report a decline in revenue for the first time in nearly four years.
2024 has been a rough year for the electric vehicle manufacturer's stock. Since the new year, it has fallen by about 43 percent, to its lowest levels since January 2023.
All of the past seven days have sent Tesla stock lower. That's the situation one day before Elon Musk's electric vehicle manufacturer reports its first-quarter results on Tuesday evening.
Tesla is becoming less popular among Nordnet's small savers, says Nordnet investment expert Mads Johansson.
Trading in Tesla was much smaller in 2024 after the stock fell. They sold to more and more people, and we saw that there was less interest.
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There are now about 60,000 Nordnet customers in the Nordics who own Tesla shares. At most, just over two years ago, the number was more than 100,000, and 40,000 Norwegians owned Tesla shares.
– There has been a long series of negative news. You may have lost a little of the charisma and fan base you once had.
I believe in a sharp decline in profits
A decline in sales volume and profits is expected when Tesla releases the numbers after closing time on Wall Street on Tuesday. This is shown by estimates compiled by Bloomberg.
Revenues are expected to decline to $22.3 billion in the first quarter of this year, compared to $23.3 billion in the same quarter of 2023. In this case, this would be the first year-over-year decline in revenues in nearly four years, since the quarter 2nd of 2020.
Earnings after taxes are expected to fall by more than 40 percent to $1.47 billion, or $0.41 per share.
Tesla had already delivered disappointing sales numbers that were well below expectations, an update showed earlier in April. In the first three months of 2024, Tesla delivered 386,810 vehicles.
When it comes to stock results, Nordnet's Johansson notes that the market has already “taken a lot into account” with the recent downturn, but it's always fun to follow the post-trading post on Tesla shares after the quarterly numbers.
– It is a widely traded share. There will be violent consequences one way or another.
Robot taxi and cheap car
In addition to the financial aspects, there are two topics in particular that analysts are keen to see if they will receive further hints on.
One is plans for a cheaper Tesla, informally referred to as the “Model 2.” The second is Tesla's plans for self-driving robotaxis. At the beginning of April, Elon Musk announced in a message on X/Twitter the “unveiling of the Tesla Robotaxi” on August 8th.
More people are wondering if the robotaxi project could have a Model 2 sequel, and when it might arrive.
– There has always been a debate about margins versus volume for them, and this is the latest development. The success of this transition depends entirely on what the transition to autonomous driving means, says James Anderson of Lingoto Investment Management. Financial Times.
Dan Levy, an analyst at Barclays Bank, believes that the investor presentation after the quarterly numbers this time could be one of the most exciting ever.
– The Model 2 plan will likely get the most attention this quarter, but don't expect satisfactory answers, Levy wrote in a note, according to Bloomberg.
Reduce prices and frequency
Tuesday's earnings release comes after an eventful week for Tesla.
Over the weekend, the company cut prices worldwide, in the face of weak sales and rising inventories. This is after several price cuts through 2023. In the US, the Models Y,
Here in Norway, the price of the Model 3 has been reduced by NOK 23,000.
Earlier this week, it became clear that Tesla is cutting more than 10% of its workforce globally. Elon Musk informed employees about this in an email, according to Bloomberg.
Additionally, Tesla's board of directors asked shareholders to approve a controversial pay package worth more than $600 billion for Musk. The Tesla CEO himself has postponed a visit to India, citing that he has to deal with “very heavy” commitments at Tesla.
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