CEO Elon Musk Recently Gave Tesla Investors Some Great News. But the Stock Still Faces 3 Big Challenges.
It hasn't been an easy year for electric vehicle maker Tesla (NASDAQ: TSLA), which has seen its stock fall roughly 30% this year (as of April 30 market close). The company reported disappointing first-quarter results, with deliveries of roughly 337,000 coming in the lowest level seen since 2022.Many investors and analysts have also suspected that CEO Elon Musk's work with the Department of Government Efficiency (DOGE) has hurt the brand. However, investors got some reprieve during Tesla's first-quarter earnings call, when Musk told investors that his work with DOGE would be scaled back significantly in May, leading many investors to believe he will refocus on Tesla. While this is undoubtedly great news, the company still faces three big challenges.Whether Musk alienated Tesla customers or not with his role at DOGE, there is no doubt that Tesla's core EV business is struggling. In January and February, Tesla's sales in Europe supposedly plummeted nearly 50% year over year, according to the European Automobile Manufacturers' Association. That's despite the organization saying that EV sales in Europe grew 28% during that time.Continue reading
It hasn't been an easy year for electric vehicle maker Tesla (NASDAQ: TSLA), which has seen its stock fall roughly 30% this year (as of April 30 market close). The company reported disappointing first-quarter results, with deliveries of roughly 337,000 coming in the lowest level seen since 2022.
Many investors and analysts have also suspected that CEO Elon Musk's work with the Department of Government Efficiency (DOGE) has hurt the brand. However, investors got some reprieve during Tesla's first-quarter earnings call, when Musk told investors that his work with DOGE would be scaled back significantly in May, leading many investors to believe he will refocus on Tesla. While this is undoubtedly great news, the company still faces three big challenges.
Whether Musk alienated Tesla customers or not with his role at DOGE, there is no doubt that Tesla's core EV business is struggling. In January and February, Tesla's sales in Europe supposedly plummeted nearly 50% year over year, according to the European Automobile Manufacturers' Association. That's despite the organization saying that EV sales in Europe grew 28% during that time.
