Tesla Inc.’s vehicle deliveries fell short of even the most bearish analyst’s expectations, sparking a 4% drop in shares and further highlighting the impact of CEO Elon Musk’s polarizing actions on consumer sentiment.
The electric car maker delivered 336,681 vehicles in the first quarter, its worst quarterly total since 2022. This news led JPMorgan Chase & Co. analyst Ryan Brinkman to downgrade his earnings estimate for the company, reducing it from $40 cents per share to 36 cents and trimming his full-year projection to $2.30.
The drop in estimates comes after Musk’s interventions in global politics, which have become increasingly divisive. The Tesla CEO is expected to step back from his role leading a federal cost-cutting initiative but will still maintain significant influence over the effort and remain a Trump confidant.
Musk’s actions have also had a toll on Tesla’s sales, particularly in Europe. The company’s vehicle deliveries in Germany plummeted 62% last quarter, sparking concerns about the long-term impact of his approach on the brand’s reputation.
Source: https://finance.yahoo.com/news/tesla-estimates-cut-further-unprecedented-102345155.html