Elon Musk had better sleep with one eye open.
The Tesla (TSLA) CEO and SpaceX owner recently made a point of telling the world that he was committing to his businesses after devoting so much of his time in the Trump administration to running the Trump administration’s Department of Government Efficiency.
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“Back to spending 24/7 at work and sleeping in conference/server/factory rooms,” wrote Musk in a May 24 post on X. “I must be super focused on X/Xai and Tesla (plus Starship launch next week), as we have critical technologies rolling out.”
Musk and Doge, which has slashed a record number of federal jobs, have been on the wrong end of multiple opinion polls, and Tesla stock has taken some serious hits as Musk’s political stance alienated a large part of his customer base.
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Analyst expects Q2 decline in Tesla sales
Tesla shares have more than doubled (up 104%) from a year ago but are down 10% this year.
A spate of attacks this year targeted Tesla cars and dealerships. FBI Director Kash Patel labeled the attacks “domestic terrorism.”
President Donald Trump, who has disparaged electric vehicles, in March hosted a Tesla sales event on the South Lawn of the White House.
Meanwhile, the company’s sales in Europe last month nosedived 49% year-over-year and Tesla’s April sales declined in the U.S. and China.
The world’s richest man, who was Trump’s largest backer, also courted controversy by endorsing Germany’s extreme anti-immigrant party, AfD, and butting heads with Scandinavian labor groups.
“Lower deliveries reduce Tesla’s total addressable market for its ancillary products and services, which include autonomous driving subscription software, charging, and insurance in a select number of US states,” Morningstar analyst Seth Goldstein wrote.
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Goldstein said the fall in April sales confirmed his view that Tesla would likely see deliveries decline in the second quarter.
“For now, we maintain our $250 fair value estimate for narrow-moat Tesla,” Goldstein said. “While we expect second-quarter deliveries will decline, a double-digit drop would put at risk our full-year forecast for Tesla to see only a low-single-digit decline.”
Goldstein said that at current prices Tesla shares were overvalued, adding that “the current share price reflects a lot of optimism surrounding the company’s ability to launch its robotaxi product.”
The company plans to launch its robotaxi service in Austin next month. City officials say they are still awaiting important information regarding safety protocols, according to Fortune.
Global equities expert: BYD outsold Tesla in Europe
UBS analyst Joseph Spak said in a May 27 research note that the firm’s Global EV Adoption Outlook Consumer Survey suggested interest in Tesla in the U.S., China, and Europe was declining, according to the Fly.
In the U.S., the analyst noted “saturation,” limited vehicle pickup, and affordability regarding Tesla. And in China Tesla is no longer seen as the technology leader, Spak said. The investment firm maintained its sell rating and $190 price target on Tesla shares.
TheStreet Pro’s Alex Frew McMillan sees a serious challenge to Tesla out of China in the form of BYD (BYDDY) , the world’s largest EV maker.
Related: Elon Musk latest message sends Tesla stock surging
McMillan, global equities expert for Real Money and Real Money Pro, said BYD had slashed prices on 22 EV and hybrid models by as much as a third. The discounts will run until June, he noted, helping the company sell off older stock, now that it pledges to introduce its driver-assist function even on its cheapest models.
Chinese electric-vehicle stocks plummeted following BYD’s announcement.
“It is likely that other Chinese carmakers will follow suit in cutting prices at home,” McMillan said. “The fierce war for market share inside China is driving Chinese EV makers to expand internationally, where they can achieve fatter profit margins.”
That’s bad news for Tesla in Europe, where its sales are already flagging, he said.
“BYD sold more cars in Europe than Tesla for the first time, with sales skyrocketing 359%,” McMillan said. “Overall, the April sales show that EVs are growing as a segment in Europe, even as total auto sales across the continent fell 0.3%.”
Even after paying import tariffs, he added, companies such as BYD can achieve better profit margins on vehicle sales in Europe.
BYD is also quickly establishing its presence in major overseas markets, including Mexico, Brazil, Thailand, Australia, New Zealand, and many others, according to Electrek.
Last month, BYD launched the first EVs based on its new Super e-platform with ultra-fast charging.
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