Tesla ( TSLA , Financials ) traded lower Thursday morning after the company reported a drop in quarterly deliveries and amid heightened investor concerns over new tariffs and CEO Elon Musk's ongoing government role.
Shares of the electric vehicle maker were priced at $271.29 at 9:49 a.m. Eastern Daylight Time, down $11.47 or 4.06% from the previous close. The stock hit an intraday low of $263.58 and last traded at $272.39 as of 1:34 p.m. Coordinated Universal Time, marking a 3.67% drop.
The company said it delivered 336,681 vehicles in the first quarter, a 13% year-over-year decline and the lowest since 2022. Tesla attributed the decrease to production line retooling across all four factories to accommodate the new Model Y. Analysts, however, cited other factors, including weakening demand and reputational concerns tied to Musk's political activity.
Musk, who is serving as a special government employee at the Department of Government Efficiency, said his tenure will end by May 30, the statutory maximum of 130 days. Reports that he may leave the position early were dismissed by Musk as fake news.
The stock briefly rebounded Wednesday following media reports that President Donald Trump had informed some cabinet members that Musk could depart his government post sooner than expected.
Tesla shares have faced downward pressure in recent months, with investors expressing concern about Musk's divided attention between Tesla and government responsibilities. Several Wall Street analysts have cited damage to the brand and a lack of focus at the executive level.
Further complicating sentiment was Trump's announcement of new tariffs of 34% on Chinese goods and 32% on imports from Taiwan. Analysts warned these measures could depress U.S. vehicle sales by up to 3 million units, potentially impacting Tesla and other automakers with international supply chains.
Ross Gerber, a longtime Tesla investor, said the company may require new leadership, adding that Musk's actions have contributed to declining consumer trust and brand equity.
Tesla shares have ranged from $138.80 to $488.54 over the past 52 weeks.
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