Deepak Badri – Apr 4, 2024
Madison, WI — Those with an avid interest in the stock market are more than likely to be keeping up with the dramatic decline of Tesla’s stock price. Many follow this decline with different perspectives, from a potential investor worried about their investment to a pure speculator hoping for a resurgence.
As seen from the graph, Tesla’s stock has dropped a staggering 50% from its November peak in 2021.
After Tesla’s Q1 Delivery Report came out, one question is in every investor’s mind: How did Tesla manage to not meet what was already extremely low expectations?
According to the report, Tesla failed to fulfill their estimated global deliveries and vehicles produced. This led to the stock dropping 6% after the report’s release. Most concerning was not that Tesla failed to meet fulfillment numbers, but that the numbers were way below the market expectations, let alone their figures from Q4 of last year.
Tesla had around 50,000 fewer global deliveries than expected for Q1 and produced around 50,000 fewer vehicles than in Q4 of last year. To put this into context, these are the worst Q1 performance for Tesla since 2020. It is important to note that 2020 was during the COVID-19 pandemic, which caused a broader decrease in production.
Many believe the fall of Tesla’s share price is just beginning and will continue to drop like a rock. In this turmoil, Tesla CEO Elon Musk is garnering a lot of the blame — a lot of which is due to his questionable leadership tactics and views. However, all is not lost for Tesla as a bounce back is still plausible, as long as you have extra money and are willing to take a long-term risk.