Tesla Faces Investor Backlash as Q4 Earnings Miss Mark and Market Value Plummets 📉

Tesla’s latest earnings call has triggered a harsh response from Wall Street, causing a steep sell-off and erasing $50 billion in market value. The electric vehicle (EV) manufacturer fell short of expectations with Q4 profits and revenue, delivering a grim outlook on production slowdown. The disappointing results led to an immediate 4% drop in stock, deepening to 8% the next morning. Analysts, including Dan Ives from Wedbush Securities, labeled the earnings call a “train wreck,” citing a lack of reassurance from Elon Musk and his team on ongoing challenges like price cuts and fluctuating demand. Despite the short-term hurdles, Wedbush remains optimistic about Tesla’s long-term prospects, anticipating a 17% YoY growth in deliveries. However, G Squared Private Wealth Management’s Victoria Greene raised concerns about Tesla’s focus, suggesting the extensive discussion on AI and future projects during the call might indicate an identity crisis. Deepwater Asset Management’s Gene Munster acknowledged the sobering outlook but believes in Tesla’s future, anticipating a potential 30% growth in production and delivery volume by 2025.