Tesla Stock's 50% Crash: 1 Metric Suggests More Pain Is Ahead for the Electric Vehicle Giant
There is never a dull moment in the land of Tesla (NASDAQ: TSLA). The electric vehicle (EV) giant's shareholders went through a period of euphoria that sent the stock surging after the 2024 election. Today, with the stock down by around 50% from its all-time high, all these gains have been erased. Meanwhile, the company's margins continue to erode, and it's losing market share in countries around the world.As ever, CEO Elon Musk has grand ambitions for the future of Tesla. Cybercabs, a new roadster, artificial intelligence (AI) projects, and even a Tesla Diner are in the works. Yet regardless of how excited Musk is about the company's future, one earnings metric matters above all else for this stock price, and it looks ugly right now.Tesla reported its first-quarter results after the close of trading Tuesday, and its stock surged in after-hours trading. However, that upswing -- which, despite sharp oscillations in sessions that followed, has largely persisted as of midday Thursday -- was likely due in part to the broad market reaction to President Donald Trump's statements around U.S. tariffs on China and his lack of a plan to try to fire Federal Reserve Chair Jerome Powell. If you take a look at the underlying Tesla report, the numbers do not look good.Continue reading
There is never a dull moment in the land of Tesla (NASDAQ: TSLA). The electric vehicle (EV) giant's shareholders went through a period of euphoria that sent the stock surging after the 2024 election. Today, with the stock down by around 50% from its all-time high, all these gains have been erased. Meanwhile, the company's margins continue to erode, and it's losing market share in countries around the world.
As ever, CEO Elon Musk has grand ambitions for the future of Tesla. Cybercabs, a new roadster, artificial intelligence (AI) projects, and even a Tesla Diner are in the works. Yet regardless of how excited Musk is about the company's future, one earnings metric matters above all else for this stock price, and it looks ugly right now.
Tesla reported its first-quarter results after the close of trading Tuesday, and its stock surged in after-hours trading. However, that upswing -- which, despite sharp oscillations in sessions that followed, has largely persisted as of midday Thursday -- was likely due in part to the broad market reaction to President Donald Trump's statements around U.S. tariffs on China and his lack of a plan to try to fire Federal Reserve Chair Jerome Powell. If you take a look at the underlying Tesla report, the numbers do not look good.