From Nasdaq: 2024-04-04 06:31:00

Tesla’s stock took a hit after reporting worse-than-expected first-quarter deliveries, falling nearly 5% on Tuesday. With the stock down over 30% this year, shareholders are facing challenges amid a lull in the company’s product cycle and overall macroeconomic environment for new-car sales. The stock may not be a buy just yet.

Tesla produced 433,371 electric vehicles in Q1, down from previous quarters, while deliveries dipped to 386,810. Management cited production ramp challenges and external factors like factory shutdowns due to conflicts. Higher interest rates and market uncertainty also contributed to the disappointing quarter, creating obstacles for future growth and profitability.

CEO Elon Musk acknowledged the impact of interest rates on demand but emphasized the importance of affordability for customers. With Tesla facing a lull in its product cycle, a clear growth strategy, and timeline are needed. While the company’s cash reserves and customer base are strong, challenges ahead pose risks to investors considering buying shares at this time.



Read more at Nasdaq: Tesla Stock Is Down More Than 30% This Year. Time to Buy?