Key Points

- Tesla stock is down over 30% this year
- Tesla's weak first-quarter deliveries are seen as an 'unmitigated disaster'
- Wall Street sets Tesla stock price for next 12 months
- Sentiments sour for Rivian despite positive delivery numbers
- 1 Wall Street analyst predicts an 87% downside for Tesla stock

Tesla, the electric vehicle (EV) giant, has been facing a tumultuous year in the stock market. The company's stock has plummeted by over 30% in the past year, raising concerns among investors and analysts alike. The weak first-quarter delivery figures for Tesla have been described as an 'unmitigated disaster', marking the first decline in nearly four years and falling well short of Wall Street's estimates. This decline has been attributed to mounting competition from China, which has played a significant role in impacting Tesla's sales.

Despite its recent struggles, Tesla has dominated the EV market, essentially creating it from scratch when few others believed such cars were commercially viable. Since 2020, the company has been turning a profit, growing in prominence, sales, and customer base. However, the recent sales slump has raised questions about the company's future trajectory.

In response to the delivery figures for the final quarter of 2023, Wall Street had set high expectations for Tesla, with the company appearing to be on track to reach a new all-time high. However, the disappointing sales numbers have caused Tesla's stock to plummet to a six-month low, as investors reacted to the unexpected decline in sales. Elon Musk's electric vehicle giant delivered 386,800 cars in the three months to March, down more than 8% from the same period a year ago.

The negative sentiment surrounding Tesla has also impacted other companies in the EV market. Despite positive delivery numbers, sentiments soured for Amazon-backed EV maker Rivian Automotive Inc, as Tesla's struggles have cast a shadow over the entire industry. Rivian exceeded Wall Street analyst predictions, marking a 70% year-on-year improvement in its delivery numbers, but the overall market sentiment has been affected by Tesla's downturn.

One Wall Street analyst, Gordon Johnson, has predicted an 87% downside for Tesla stock, citing the company as vastly overpriced given its output and sales. This grim forecast has added to the growing concerns about Tesla's future in the stock market.

In conclusion, Tesla's recent struggles in the stock market have raised significant concerns about the company's future. Despite its previous dominance in the EV market, mounting competition and a sharp decline in sales have led to a steep drop in Tesla's stock. The negative sentiment surrounding Tesla has also affected other companies in the industry, highlighting the interconnected nature of the EV market. As investors and analysts continue to monitor Tesla's performance, the company's future remains uncertain amidst the changing landscape of the electric vehicle industry.

About TSLA

Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty after-sales vehicle, used vehicles, body shop and parts, supercharging, retail merchandise, and vehicle insurance services. This segment also provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; purchase financing and leasing services; services for electric vehicles through its company-owned service locations and Tesla mobile service technicians; and vehicle limited warranties and extended service plans. The Energy Generation and Storage segment engages in the design, manufacture, installation, sale, and leasing of solar energy generation and energy storage products, and related services to residential, commercial, and industrial customers and utilities through its website, stores, and galleries, as well as through a network of channel partners; and provision of service and repairs to its energy product customers, including under warranty, as well as various financing options to its solar customers. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas.

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