Tesla stock (TSLA) suffered another loss in trading on Monday’s session, falling over 3.5% in pre-market trading and another 3% during the day. The stock is coming off its worst weekly performance since January 3, falling 7% since the end of last week. Although big things were expected from the EV manufacturer entering the year, Tesla (TSLA) stock has fallen ahead of its anticipated Q4 earnings. With all eyes on the data derived from the report, analysts are projecting another fall to come.
Tesla’s upcoming earnings report is expected to be a critical driver for the stock. Analysts forecast adjusted earnings per share (EPS) of $0.76 on revenue of $27.11 billion, with operating profit margins anticipated at 10.5%, up from 8% a year ago. However, Tesla has missed earnings and revenue estimates in three of its last four quarters, keeping investors on edge.
Despite founder Elon Musk’s ties to the new US president Donald Trump and the new administration, Tesla and other EVs are expected to get hammered down in 2025. This is in part due to Trump’s decision to dismantle Biden-era climate policies favoring electric vehicles.
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Tesla Stock Projections Lower on Wall Street?
Additionally, Wall Street forecasts are below Elon Musk/Tesla’s expectations. Analysts expect Tesla’s FY25 volume growth to fall closer to 10%, compared to Musk’s earlier projection of 20–30%, according to a Financial Times report. Wall Street’s lowered forecast also reflects rising competition from China, slowing Cybertruck volumes, and a potential rollback of EV tax incentives, the report added.
Furthermore, the upcoming report is expected to shine light on new Tesla updates that could help stock pick back up. Investors should expect updates on the company’s autonomous driving software. Indeed, its level 3 Full Self-Driving (FSD) unsupervised software is aiming to launch in Texas and California this year. Its Level 2 FSD is eyeing an arrival in Europe and China. Also, the company is expected to launch a new vehicle later this year. The smaller SUV named Model Q will come with a $30,000 price tag and see the firm eyeing increased competition in the SUV market.
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Although the company has impressive financials, opinions are split. According to CNN Data regarding 57 analysts, only 46% have maintained a buy rating on the stock. Alternately, 23% have called to sell, with the firm holding a median price target of $278. That projection is down 32% from its current position.