Tesla's Tumultuous Path: Elon Musk to address investor concerns in pivotal earnings report
Tesla and Musk, constituting "one of the most important moments in the company's history in our view," said a note from Wedbush. Heading into 2024, Tesla watchers were already girding for a tougher path, with Musk's once-dominant leadership in EVs facing more competition from rivals, resulting in a series of price cuts. After disclosing on April 2 a disappointing 8.5 percent drop in first-quarter deliveries, Tesla last week announced plans to lay off more than 10 percent of its staff.
That news was quickly followed by Tesla's plan to revive a $56 billion compensation package for Musk after a court struck it down. Then, late last week, Tesla announced a recall of its Cybertruck due to an acceleration problem. Musk has also been beset by speculation that the company is shelving plans for the "Model 2," the unofficial name of what is expected to be a mass-marketed, lower-priced vehicle.
On the positive side, Musk has said the company will this summer unveil a "Robotaxi." Yet analysts have noted that safety questions are clouding the timeframe for the vehicle. "There's a lot of confusion about what direction are they going," said Stephanie Valdez Streaty, director of industry insights at Cox, who pointed to a more than 40 percent drop in Tesla's share price in 2024 as an indicator of unease. Investors want "more clarity about what their strategy is," she said.
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