TSLA
📉 Tesla faces significant headwinds: The stock price has fallen significantly after hitting highs, global sales are decelerating with Q1 deliveries down 13% year-over-year, and profits have dropped sharply.
🚗 Used car price plunge signals trouble: Prices for used Teslas have declined notably (Model Y -13%, Model 3 -10% year-over-year), presented as a key indicator suggesting potential future stock weakness.
🔄 Political impact and recovery potential: Elon Musk’s association with the Trump administration appears to negatively affect brand perception among some consumers, though this damage is considered potentially reversible as focus shifts to future projects like Optimus and robotaxis.
@bernardodegarcia:
“Whether you own Tesla shares or not, you know Elon Musk is a figure who never goes unnoticed, and his business and political moves generate enormous attention. After Donald Trump’s election, many saw Musk as a potential big winner, considering his investments supporting the campaign. Initial expectations were high; betting on Trump seemed like a strategic move with great benefits for Musk and Tesla. However, the first 100 days of the new administration have told a very different story for the electric vehicle company. Far from a takeoff period, it coincided with significant challenges for Tesla and a personal impact for Musk. Today, we’ll analyze the data showing how Tesla has fared during these first 100 days. One key indicator, I guarantee, is quite direct about the future of Tesla shares: when this indicator falls, Tesla shares will fall, and when it rises, Tesla shares will rise. Despite initial expectations that Trump’s presidency would bring substantial benefits, Musk has faced considerable challenges. One visible indicator is Tesla’s stock performance. After reaching a new all-time high in mid-December, just before Trump took office and coinciding with a rally after his confirmation, Tesla shares have fallen significantly. This drop has been a key factor for Musk’s wealth and for many of us. Parallel to the stock decline, Tesla has continued experiencing a slowdown in global sales. Data shows fewer people are buying Tesla cars. First-quarter 2025 deliveries were worse than expected, falling 13% compared to the same period in 2024, with about 336,700 EVs sold. This weakness also reflects in the used car market. The constant decline in the average price of used Teslas is a key measure of the brand’s weakness. In March 2025, used Tesla prices had fallen 10% year-over-year. Specific models saw steeper drops: the average Cybertruck price is down 50% in the last year, while the Model Y and Model 3 used prices fell 13% and 10%, respectively. Financially, the company’s results also show drastic downward trends. Tesla’s net income in the last 12 months decreased by 57% (71% GAAP). Automotive sector revenue fell 20% in the last quarter. This has directly impacted Elon Musk’s fortune and our portfolios. Since the peak in mid-December, his net worth has fallen significantly. A growing political backlash against Musk and Tesla also seems to be contributing. Google Trends searches for ‘Tesla vandalism’ have increased. The perception is that consumers are voting with their wallets against Musk’s association with the current administration, leading to a politicization of the brand. This is relevant because a historical segment of EV buyers (often Democrats, environmentalists) may feel alienated. Unlike Musk’s private ventures, Tesla, being publicly traded and selling to the mass market, is more exposed to these political headwinds. Many wonder if this political reaction is reversible. Markets forget quickly. Microsoft, for example, had strong results despite recent concerns. Markets forget faster than we think. I believe the damage to the Tesla brand is reversible, potentially already reversing as Musk distances himself from the Trump administration and focuses on Tesla’s future like Optimus and robotaxis. Consumer sentiment can change. While negative sentiment doesn’t help, if the brand is good, it can recover. Recent data, including the Q1 delivery drop and falling used car prices, suggest considerable operational and perception challenges. The used car price trend is the key indicator of where Tesla shares are headed. What will happen? Will the ‘rust’ on the Tesla brand disappear? I’m interested in your opinions.”
Watch the exact part of the video where @bernardodegarcia talks about Tesla here:
Watch the video on YouTube
Read more articles analyzing Tesla (TSLA) at the provided link. TSLA stock.
