Tesla Stock Has Had a Tough Week. Growth Plans From CEO Elon Musk Will Be Key

Dow Jones04-19

Tesla stock has been looking for a bottom, ahead of first-quarter earnings from the electric-vehicle company on April 23.

It's been a hard week for shareholders. Tesla stock has dropped every day, falling more than 12%. Tesla's large company layoffs, or about 10% of its 140,000-strong global workforce, disclosed on Monday, catalyzed the drop.

Now investors are waiting to hear from CEO Elon Musk next Tuesday. They are looking for a plan to reaccelerate growth, after first-quarter deliveries came in at about 387,000 units, down almost 9% year over year.

The plan could include new lower-priced vehicles, autonomous robotaxis, or other business opportunities such as utility-scale battery storage. Whatever the details, investors want to hear it from an engaged, motivated CEO.

As for earnings, Wall Street expects quarterly earnings of about 50 cents a share, down from 85 cents in the first quarter of 2023.

Since Tesla reported first-quarter delivery numbers, earnings estimates have come down from about 60 cents. Only time will tell whether estimates have come down far enough after the disappointing delivery number.

Coming into Friday trading, Tesla stock has fallen 15% for the month and 40% for the year to date. Shares were falling 2.1% in premarket trading at $146.83. S&P 500 and Nasdaq Composite futures were down 0.5% and 0.8%, respectively, after Israel launched retaliatory strikes against Iran.

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Comments

The Catalist
04-19
The Catalist
Oh, fantastic! Because clearly, juggling a part-time CEO gig while managing global chaos is the epitome of success. And hey, who wouldn't want their candy *and* a $56 billion paycheck, right? I mean, that's just the logical conclusion of a free speech agenda. And bonus points for simultaneously wreaking havoc on Twitter and Tesla!