Tesla (NYSE:TSLA) continues to face problems with tariff uncertainty and brand backlash over Elon Musk’s political role.
TSLA – Daily Chart
Tesla has found strong support at the election win levels and that could see a further gain in the stock price over the coming weeks as tariff fears subside.
Protests targeting Tesla showrooms have dented the company’s image, while Q1 results were hurt by a sharp drop in sales.
The stock was able to rally about 5% after Musk said he would step back from the Department of Government Efficiency to focus on the EV maker. Yet underlying issues remain as recent data from used-car listings show Tesla’s resale values plunging double-digits in March, far less than any other brand. The Model S led the decline with a 17.2% year-over-year drop, followed by the Model Y at 13.1%, the Model 3 at 10.9%, and the Model X down 7.3%.
The company has been planning to refresh its range of models but used prices are declining due to owners not wishing to be a target for protestors.
The company is still valued at $834 billion by market cap and Tesla remains a leader in the electric vehicle space. Alongside its cars, the company also offers energy storage solutions and operates the world’s largest fast-charging network, with over 7,000 Supercharger stations and 1,359 sales centers globally.
Tesla is currently working on the robotaxi, its much-anticipated autonomous vehicle. The company plans to roll out its first robotaxi fleet in Austin by June 2025, deploying self-driving Model Ys equipped with safety drivers. If successful, it could cut ride-hailing costs and significantly boost Tesla’s revenue and valuation.
Tesla’s slowing sales are the big problem with European deliveries dropping 49% to just 19,046 units in the first two months of 2025. That is a problem as the overall EV market grew 24% during the same period. Analysts have blamed the outdated Model Y and heavy price cuts from rivals like Volkswagen and Stellantis.
The situation is tougher in China after BYD’s rapid growth, thanks to cheaper models and local advantages have pushed Tesla into a smaller share of the market. Tesla once had more than 20% of China’s EV sales but is losing ground fast. Until a more affordable Tesla arrives, domestic rivals can continue to profit.
Consumer confidence remains weak across the globe but Tesla is still maintaining a high valuation as investors put their focus on the Robotaxi launch this year.
