Tesla (NASDAQ: TSLA) shares have dropped 20% in 2023, contrasting with the S&P 500’s 5% gain. Experts attribute the decline to poor financial results and loss of market share, alongside CEO Elon Musk’s controversial behavior which has alienated both political parties.
For three of the last five quarters, Tesla’s deliveries have decreased, with a 20% drop in automotive revenue and a 40% decline in net income year-over-year for Q1 2025. Additionally, Tesla’s U.S. market share fell 9 percentage points, European share dropped 8 percentage points, and Chinese share decreased by 3 percentage points, despite a global increase of 38% in electric car sales through April 2025.
Wall Street analysts have revised earnings estimates for Tesla downwards by 25% and 16% for 2025 and 2026, respectively. However, Tesla is launching an autonomous ride-sharing service in Austin, Texas, which analysts estimate could yield significant future revenue, potentially reaching $700 billion by 2040.
