Tesla Stock Plummets 15.32% in Two Days, Second-Highest Trading Volume

On April 4, 2025, Tesla (TSLA) experienced a significant decline, with its stock price dropping by 10.42% over two consecutive days, resulting in a total decrease of 15.32%. The company's trading volume reached 438.91 billion, making it the second-highest in the market for the day.

Finance veteran Jim Cramer recently expressed his views on Tesla, stating that the electric vehicle maker no longer qualifies for the "Magnificent Seven" group of U.S. tech companies. Cramer attributed this to the fallout from U.S. President Donald Trump's tariffs, which are expected to impact various industries, including automakers like Tesla. Despite this, Tesla's domestic factories, such as Gigafactory Texas and the Fremont Factory, are expected to provide some protection against the tariffs. However, Elon Musk has acknowledged that the tariffs will affect the price of parts in Tesla cars that come from other countries, describing the cost impact as "not trivial."

Counterpoint Research has estimated that Chinese automaker BYD will overtake Tesla in Battery Electric Vehicle (BEV) sales this year. The market researcher highlighted several factors that could help BYD achieve this, including its 1,000-kW ultra-fast charging technology and 10C charging rate batteries, which exceed Tesla's current Supercharger offerings. Counterpoint also noted that Tesla is facing several challenges, including damaged public perception due to CEO Elon Musk's politics and geopolitical tensions between the United States and key markets like China. The market researcher highlighted Tesla's soft sales in Europe and other markets, though it did not consider the company's changeover to the new Model Y across its global factories in Q1 2025.

Tesla reported deliveries of 336,681 vehicles in the first quarter of 2025, falling short of Wall Street estimates of 352,000 and whisper numbers of roughly 350,000. The company attributed this to the loss of "several weeks of production" in Q1 due to the ramp of the new Model Y at all four of its vehicle production factories. Analyst Dan Ives from Wedbush described the performance as "a disaster on every metric" and called for Musk to balance his responsibilities with the Department of Government Efficiency (DOGE) and Tesla. Ives also recognized Tesla's prowess with the rollout of robotaxi and Full Self-Driving, but emphasized the need for Musk to navigate the current crisis and focus on Tesla's projects.

Tesla has announced that it will hold its first-quarter earnings call on April 22, 2025, at 4:30 p.m. Central Time / 5:30 p.m. Eastern Time. The event will be livestreamed, and an archived version will be shared on the company's website. Prior to the earnings call, Tesla will release its Q1 2025 Update Letter. Tesla enthusiasts and TSLA bulls have observed that the electric vehicle maker adjusted its wording in its Q1 2025 vehicle delivery and production report, noting that it would also be holding a "Company Update" on April 22. This is the first time that such an event has been referenced by the electric vehicle maker with its quarterly earnings call. Expectations are high that Tesla will discuss some of its highly anticipated projects during its Company Update, including new affordable vehicles that were mentioned in the Q4 and Full Year 2024 Update Letter.