What's Going On With Tesla Stock?

Tesla Inc TSLA shares are trading lower Wednesday, adding to losses of nearly 5% on Tuesday. Here’s a look at what’s going on.

What To Know: Tesla shares closed Tuesday down 4.9% at $166.63 after the company reported weak deliveries for the first quarter.

Tesla said it produced 433,371 vehicles in the first quarter, down from 440,808 year-over-year. The EV maker delivered 386,810 vehicles last quarter, down from 422,875 year-over-year. This was Tesla’s first year-over-year decline in deliveries since 2020.

Tesla said the decline in volumes was partially due to the early phase of the production ramp of the updated Model 3 at its Fremont factory, as well as factory shutdowns resulting from shipping diversions caused by the Red Sea conflict and an arson attack at Gigafactory Berlin.

Following the delivery and production release, multiple analysts weighed in, expressing concerns over the company’s short-term outlook.

Wedbush analyst Dan Ives called Tesla's first-quarter deliveries print an "unmitigated disaster” that sets the company up for a “nightmare quarter.” Ives warned that troubling days could be ahead if CEO Elon Musk is not able to right the ship.

Deepwater Asset Management's Gene Munster expressed similar views to Ives in an initial reaction posted on X, but he attributed the "ugly" numbers to a combination of high interest rates and less excitement surrounding EVs in general.

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Baird lowered its price target from $300 to $280 on Tuesday, while Deutsche Bank maintained its Buy rating and price target of $200. More analyst reactions are rolling in on Wednesday.

JPMorgan maintained Tesla with an Underweight rating and lowered its price target from $130 to $115. HSBC maintained Tesla with a Reduce rating and lowered the price target from $143 to $138. Truist also cut its price target from $193 to $176 after reducing its annual unit delivery, revenue and EPS estimates for 2024 and 2025.

Tesla shares have faced continued selling pressure in recent months as the broader EV industry battles slowing demand trends. Tesla’s margins have also been hurt by a pricing war with competitors. The EV maker reported worse-than-expected results in January and turned in disappointing delivery numbers. The continued weakness in deliveries is weighing on shares this week.

Tesla announced this week that it will report financial results for the first quarter after the close on April 23. Analysts are anticipating earnings of 60 cents per share on revenue of $24.067 billion, according to Benzinga Pro.

TSLA Price Action: Tesla shares were down 1.81% at $163.63 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Tesla.