Tesla(US:TSLA) Business Insider·2024-04-22 12:33Core Viewpoint - Tesla is expected to report a significant profit drop of 40% and its first revenue decline in four years, amid falling demand and increasing competition in the electric vehicle market [1][4]. Group 1: Financial Performance - Tesla's share price has decreased by over 40% since the beginning of the year, reducing its market value to approximately $460 billion [2]. - The company delivered about 387,000 vehicles in the first quarter, representing a 20% decline from the previous quarter [4]. - Tesla is anticipated to announce a 40% profit drop in its upcoming earnings report [4]. Group 2: Market Challenges - Demand for electric vehicles has sharply declined, particularly in China, where Tesla is engaged in a price war with local competitors like BYD [5]. - Tesla has implemented price cuts for its Model 3 and Model Y vehicles in China, the US, and Europe, aiming to boost sales [5]. - Investors are increasingly skeptical about Musk's strategy to achieve a sales target of 20 million electric vehicles per year by 2030 [5]. Group 3: Strategic Direction - There are concerns regarding Musk's shift in focus from producing a mass-market vehicle to developing robotaxis, which has unsettled some stakeholders [7]. - Tesla is facing challenges in scaling autonomous driving technology, which has been a long-term goal for Musk [7]. - The company is recalling nearly 4,000 Cybertrucks due to an accelerator fault, adding to its operational challenges [7]. Group 4: Leadership and Distractions - Musk is currently dealing with multiple distractions, including a legal battle over his compensation package and efforts to retain advertisers for X [9]. - The upcoming earnings report is seen as a critical moment for Musk to clarify Tesla's future strategy and address investor concerns [2][4].