Tesla is headed for its first revenue decline in a long time: - Has it perhaps lost some of its charm?

There has been a decline in stock, price reductions, and personnel layoffs. The maker of electric vehicles is anticipated to report a decline in sales for the first time in almost four years.

Stock Decline

The stock of the maker of electric cars has suffered greatly in 2024. It has dropped by about 43% from the start of the year to its lowest point since January 2023.

The share price of Tesla has decreased each of the past seven days. This is the situation one day before Elon Musk's electric vehicle company reports its first-quarter earnings on Tuesday night.

According to financial expert Mads Johannesen of Nordnet, Tesla has lost favor with small savers.

- Since the share price dropped in 2024, there has been significantly less trading in Tesla. There is less interest as more and more individuals are selling. 

Approximately 60,000 Nordnet users in the Nordic region now own Tesla stock. There were over 100,000 at its peak, a little over two years ago, and 40,000 Norwegians had Tesla shares then.

A slew of bad news has been released. Some of your charm and following may have faded.

I predict a precipitous decline in earnings.

When Tesla reveals the numbers after Wall Street closes on Tuesday, a drop in both revenue and profit is anticipated. That's based on projections that Bloomberg has compiled.

In the first quarter of this year, revenue is predicted to drop to $22.3 billion from $23.3 billion in 2023. If that is the case, it will be the first yearly revenue decline since the second quarter of 2020, or about four years ago.

It is anticipated that profit after taxes would decrease by more than 40% to $1.47 billion, or $0.41 per share.

Earlier in April, an update revealed that Tesla had already delivered poor sales data that fell well short of estimates. During the first quarter of 2024, 386,810 Tesla vehicles were delivered.

Regarding stock results, Johannesen of Nordnet notes that the recent decline has already "taken too much into account" by the market. However, watching the after-trade in Tesla shares following quarterly numbers is always interesting.

- The share is traded extensively. Either way, there will be harsh repercussions.

Prospects for the Future: Robotaxi and Model 2

One is the unofficially dubbed "Model 2" Tesla, which is intended to be less expensive. Tesla's ideas for autonomous robot taxis come in second. Elon Musk announced a "Tesla Robotaxi unveiling" on August 8 in a message on X/Twitter at the beginning of April.

An increasing number of people are inquiring when and whether a robot taxi business may impact the Model 2.

Margin vs volume has always been a point of contention for them, and this is only the most recent development. According to James Anderson of Lingotto Investment Management, who spoke with the Financial Times, the success of the turnaround would depend completely on what a move toward self-driving entails.

This might be one of the most intriguing investor presentations ever, according to Barclays analyst Dan Levy, who follows the quarterly numbers.

- Levy notes that while the Model 2 plan will likely receive the most attention this quarter, don't anticipate acceptable answers, according to Bloomberg.

Redundancies and price reductions

Following a busy week for Tesla, the company will report its profits on Tuesday.
The corporation lowered prices globally over the weekend in response to lower sales and more full warehouses. After multiple price reductions until 2023, that is. The three models Y, X, and S were around $2,000 less expensive in the US, and the Model 3 was also affected by the price decrease in China.

It was revealed earlier this week that Tesla is laying off over 10% of its employees worldwide. Bloomberg reports that Elon Musk sent an email to the staff telling them of this.
Furthermore, the shareholders have been requested by the Tesla board to ratify Musk's contentious 600 billion dollar compensation plan. The CEO of Tesla has rescheduled his trip to India, citing "very heavy" responsibilities at the company.