Key Takeaways
- Tesla shares slipped on Monday after rising in each of the past two weeks following the EV maker’s latest earnings report.
- An auto industry group in Spain said EV sales rose in the country in April, while Tesla’s sales declined.
- Analysts have said CEO Elon Musk’s political activities are hurting Tesla’s brand. The CEO has said he would focus more on Tesla starting this month.
Tesla (TSLA) shares fell as this week’s trading opened, perhaps denting the stock’s chances to rise for a third consecutive week.
Shares rose less than 1% last week following a surge the week before. Tesla last month reported first-quarter results that missed estimates, but CEO Elon Musk’s stated intention to spend more time at the electric vehicle maker starting this month encouraged some investors. Musk also confirmed plans to launch a more affordable model later this year, and start offering paid rides in fully autonomous Teslas in Austin, Texas, in June.
An automotive industry group in Spain released monthly data on Monday that showed EV sales rose year-over-year in the country, but sales of Tesla’s Model 3 and Model Y each declined. Analysts have warned that Musk’s involvement in the Trump administration has damaged Tesla’s brand and alienated potential customers in the U.S. and internationally.
Tesla shares were down about 1.5% in recent trading Monday. They are off roughly 30% since the start of the year.
Jeffries Analysts Say Tesla Stock ‘Difficult’ To Value
Jefferies analysts in a Monday note kept their “hold” rating and $300 price target, saying the company is “difficult” to value, but noted that Musk’s “long-term strategic vision, from AI to X and robotics, does provide a glue for what looks like a [venture capital] fund of separable business units.”
The analysts also said they believe the CEO’s involvement in the Trump administration has “caused more damage to Musk’s personal brand than to TSLA, which has grown much bigger than Musk himself.”
Broader markets were mixed in recent trading, as major stock indexes have largely recovered the losses suffered in the days following the Trump administration’s early April “Liberation Day” tariff announcements. (Follow Investopedia’s live coverage of today’s markets news here.)