Elon Musk Warns of Rough Quarters Ahead: Tesla Stock Under Pressure
Optimism Fades as Tesla Faces New Headwinds
Tesla Inc. (TSLA), listed on the NASDAQ, is under fire after CEO Elon Musk issued a stark warning during a recent internal meeting, signaling that the electric vehicle giant might be heading into some “rough” quarters. This announcement, coupled with disappointing revenue figures and lingering concerns about delayed innovations, has sparked a flurry of activity among investors and market watchers.
The stock has been trending downward as investors digest the implications of Musk’s comments. A key point of concern is the timeline for the Optimus robot project, which Musk had previously hyped as a revolutionary development. Delays in this area, alongside rising production costs and waning government subsidies, are putting pressure on Tesla’s growth narrative. Musk’s tone was notably more cautious than in previous quarters, acknowledging the potential turbulence Tesla may face as it navigates supply chain complications and macroeconomic headwinds.
Meanwhile, increased competition in the EV market from players like Rivian (RIVN), Lucid Group (LCID), and traditional automakers such as Ford (F) and General Motors (GM) — all also listed on NASDAQ or NYSE — is raising questions about Tesla’s dominance. The expiration of certain electric vehicle tax credits in key markets like the U.S. and Germany further dampens the near-term outlook.
Still, not everyone is bearish. Some retail traders on platforms like Reddit and X (formerly Twitter) view this pullback as a buying opportunity, citing Tesla’s strong fundamentals and long-term vision. Interestingly, political dynamics have also entered the conversation, with former President Donald Trump recently stating that he does not intend to “destroy Elon’s companies.” This comment is being interpreted by some as a potential boost for Tesla’s regulatory outlook if Trump were to return to office.
Short interest in Tesla has been on the rise, signaling that more institutional investors are betting against the stock in the short term. However, the company’s cult-like following continues to back it through thick and thin, which could provide resilience in times of volatility.
As of Thursday’s market close, TSLA was down over 3%, underperforming the broader tech-heavy NASDAQ index. Whether this decline is the start of a longer downtrend or a temporary setback remains to be seen. What’s clear is that the coming quarters will be a pivotal period for Tesla, not only in terms of financial performance but also in how it manages expectations around its futuristic projects.
