Tesla's Q1 Deliveries Plunge 20% Year-Over-Year, Sparking Analyst Concerns

Tesla's first-quarter deliveries have fallen short of expectations, marking a notable decline in year-over-year performance. This shortfall has sparked concerns among analysts about the impact on Tesla's earnings and market position. The magnitude of the car-buyer backlash has been cited as a key factor in the reduced estimates, with analysts noting that the company's brand has suffered unprecedented damage. This damage could have long-term implications for its sales and customer loyalty.

The decline in deliveries, coupled with the negative sentiment, has led to a reassessment of Tesla's prospects. JPMorgan has further reduced its estimates for Tesla, reiterating its Underweight rating on Tesla shares, with a price target of $120. The bank's note highlights the severity of the brand damage and the potential for further declines in deliveries. This assessment comes as analysts across the industry begin to recognize the impact of recent events on Tesla's brand and market position.

The reduction in estimates reflects a growing concern among analysts about the sustainability of Tesla's growth. The company's ability to navigate the current challenges and regain consumer trust will be crucial in determining its future performance. As the market continues to evolve, Tesla will need to address the brand damage and restore confidence among car buyers to maintain its competitive edge.