Tesla (NASDAQ: TSLA) stock reached its lowest point in nearly a year on Tuesday amid multiple developments. Recent reports suggest that the electric vehicle manufacturer has pushed back Cybertruck deliveries.
Tesla shares continue their downward trend, marking a third day of losses amid concerns over demand.
The Wall Street Journal reported on Tuesday that Tesla has postponed the delivery dates for several Cybertruck buyers, leaving them in the dark about the reasons for the delay. The number of affected customers remains uncertain.
Tesla launched the Cybertruck in November, making it one of the most eagerly awaited vehicle releases ever. Despite its futuristic design attracting considerable interest, CEO Elon Musk has stated that the vehicle is unlikely to generate positive cash flow for some time.
Tesla shares saw a significant drop on Monday, spurred by reports of the company’s plans to cut over 10% of its workforce. The departure of two key Tesla executives, Drew Baglino and Rohan Patel, added to the selling pressure.
Dan Ives, an analyst at Wedbush, described the exit of Baglino as an “absolute gut punch loss” this week, urging Musk to steer the company back on course as the recent string of negative news has been a nightmare for Wall Street.
Investor attention now turns to Tesla’s upcoming earnings report, scheduled for next week. Analysts are forecasting earnings per share (EPS) of 53 cents and revenue of $22.605 billion.
Gordon Johnson, an analyst at GLJ Research, maintained a Sell rating on Tesla and lowered his price target from $23.53 to $22.86, citing concerns that consensus estimates for the quarter are “still too high.”
Johnson, a long-standing Tesla bear, cautioned that Tesla might report its first quarter of negative free cash flow since 2020 next week due to overproduction, dwindling demand, and inventory issues.
Tesla (NASDAQ: TSLA) Stock Movement
At the time of publication, TSLA stock has dropped 2.71% to $157.11 compared to the previous trading session. It is down around 11% over the last week and 37% year-to-date.
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