Tesla Inc. (NASDAQ) stock declined 6.32% in Monday’s pre-market trading session amid reports of weaker deliveries in Q1 and increasing protests against the company.
What Happened: Tesla is bracing for a potential decline in Q1 vehicle deliveries. The anticipated drop is attributed to CEO Elon Musk‘s political affiliations and the increasing competition in the electric vehicle market, as per a Reuters report.
Despite assurances from Musk about a return to growth, Tesla’s aging vehicle lineup has been a subject of concern. The impact of the revamped Model Y SUV and various incentives is something Wall Street is eagerly awaiting.
Thomas Martin, senior portfolio manager at Tesla shareholder Globalt Investments told Reuters, “I think that the numbers are going to come in below 400,000 and, maybe as low as 350,000.” Other analysts estimate a 3.6% drop from last year, with Tesla delivering about 373,000 vehicles in Q1.
Adding to Tesla’s woes are global protests against Musk’s association with President Donald Trump‘s efforts to dismantle the U.S. federal government. Thousands of people worldwide rallied against Musk and Tesla, with demonstrations held in front of nearly every Tesla showroom in the U.S. and many around the world.
SEE ALSO: MARA Holdings Joins GameStop, Metaplanet In Bitcoin Reserve Push With $2 Billion Stock Sale
Why It Matters: Despite the company’s stock taking a sharp plunge since December, Elon Musk has been positive about the company. During a town hall event on Sunday, he expressed his belief that Tesla stock will perform well in the long run and suggested that this could be a buying opportunity for investors looking to take advantage of the dip. He said, “Long term I think Tesla stock’s going to do fine, so maybe it’s a buying opportunity.”
Meanwhile, noted investor Chamath Palihapitiya speculated that the recent acts of vandalism against Tesla are part of a coordinated effort to pressure Musk over his involvement with the Department of Government Efficiency (DOGE).
Benzinga’s Edge Rankings highlight strong momentum and growth rankings for Tesla in the 90th and 68th percentiles, respectively. Curious how other stocks stack up? Click here to uncover growth and momentum scores for top stocks.
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Market News and Data brought to you by Benzinga APIs
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.