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  • Writer's pictureRealFacts Editorial Team

Tesla's Volatility Pre- and Post-Earnings Report


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Tesla has experienced extreme volatility in recent days with continual news breaking that has propelled Tesla’s stock price to plummet. Over the weekend, Tesla reduced prices for its Model Y, S, and X vehicles in the U.S. by $2,000. Additionally, the price of Full Self-Driving was lowered from $12,000 to $8,000. Following this, on Sunday, Tesla (TSLA) implemented price cuts for the Model 3 and Y in China, with reductions of nearly $2,000, and decreased prices for the Model S and X by up to 22%. Furthermore, Tesla adjusted Model 3 prices in key European markets, reducing them by approximately $2,100 to $3,200. These price cuts proved to be a catalyst moving the stock down over 4% early Monday adding to the 14% drop experienced last week.

 

In preparation for their earnings report the stock rose 1.8% on Tuesday and then jumped over 10% in after-hours trading despite their worse-than-expected earnings numbers. Tesla announced its Q1 earnings, revealing a 47% decrease to 45 cents per share. Quarterly revenue amounted to $21.3 billion, marking a 9% decline compared to Q1 2023. Analysts had anticipated a decline in Q1 earnings, estimating a drop of over 42% to 49 cents per share, along with a nearly 5% decrease in sales to $22.22 billion. Kit Norton, Investors Business Daily author noted, “Tesla's Q1 EPS is the lowest since it reported 31 cents per share in Q1 2021.” These figures illustrate some of the challenges Tesla has faced recently, including increased competition and a reduction in demand for electric vehicles.


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