Musk's DOGE Exit Rumors & Weak Q1 Deliveries: How to Play Tesla Now

Group 1: Elon Musk's Involvement with Tesla - Elon Musk's leadership has significantly transformed Tesla into an industry giant, but his political involvement has raised concerns among investors [1][3] - Reports suggest Musk may step down from his political role, which positively impacted Tesla's stock, increasing by 5% [2] - Musk's political ties and divided attention are seen as contributing factors to Tesla's 30% stock decline in 2025 [3][10] Group 2: Tesla's Recent Performance - Tesla's Q1 2025 deliveries were 336,000 vehicles, missing estimates of 378,000 units and marking the lowest quarterly numbers in over two years [11] - The decline in deliveries is attributed to factory retooling for the new Model Y SUV and negative sentiment towards Musk, affecting sales across key regions [12] - BYD has surpassed Tesla in deliveries, with 416,388 battery electric vehicles delivered in Q1 2025, indicating increased competition [13] Group 3: Future Prospects and Challenges - Tesla is under pressure to launch affordable models and accelerate its autonomous driving technology, which is crucial for its long-term vision [14] - The company plans to roll out unsupervised Full Self-Driving in Austin and has applied for permits for a self-driving taxi service [15] - Analysts are lowering EPS estimates for Tesla, indicating potential further declines in stock performance [17] Group 4: Energy Business and Long-term Outlook - Despite struggles in the EV sector, Tesla's energy generation and storage business is thriving, with deployments doubling to 31.4 GWh in 2024 [19] - The long-term narrative for Tesla hinges on its autonomous driving ambitions, with progress in FSD approvals and robotaxi development being critical for future growth [20] - Wall Street's average price target suggests a 17% upside from current levels, indicating potential for recovery despite short-term challenges [21]