Ramon van Flymen / ANP / AFP / Getty Images
Takeaways
- Tesla shares slipped on Monday after rising in each of the past two weeks following the EV maker's latest earnings report.
- An auto industry group in Spain said EV sales rose in the country in April, while Tesla's sales declined.
- Analysts have said CEO Elon Musk's political activities are hurting Tesla's brand. The CEO has stated that he will focus more on Tesla from this month.
Tesla (TSLA), shares fell at the start of this week’s trading, possibly reducing its chances of a third consecutive weekly rise.
Shares fell by less than 1 percent last week after a big surge the week prior. Tesla reported first-quarter earnings that were below expectations last month, but Elon Musk’s intention to spend more of his time at the electric car maker beginning this month encouraged investors. Musk also confirmed that he plans to launch an affordable model later in the year and begin offering paid rides in fully automated Teslas in Austin in June.
A group of automotive industry professionals in Spain released data on Monday showing that EV sales in the country rose year-overyear, but Tesla’s Model 3 & Model Y sales declined. Analysts have warned Musk’s involvement in Trump’s administration has damaged Tesla’s reputation and alienated potential clients in the U.S.
Tesla shares were down by around 1.5% in recent trading on Monday. They have lost roughly 30% of their value since the beginning of the year.
Jeffries Analysts Say Tesla Stock 'Difficult' To Value
Jefferies analysts, in a Monday note, kept their “hold rating” and $300 price goal, saying that the company is “difficult” to value. However, they noted that Musk’s long-term strategic vision “from AI to X to robotics does provide a “glue” for what looks to be a [venture capital] Fund of separate business units”
The analysts also said they believe the CEO's involvement in the Trump administration has "caused more damage to Musk's personal brand than to TSLA, which has grown much bigger than Musk himself."
Recent trading on the broad markets was mixed, as major stock indices have recovered the losses sustained in the days after the Trump Administration’s early April “Liberation Day”, tariff announcements. Follow Investopedia for live coverage of the latest market news.
