Tesla investors are growing increasingly concerned following the company’s poor first-quarter performance, marked by a 13% drop in deliveries. Managing partner of Deepwater Asset Management, Gene Munster, attributes this decline primarily to recent brand damage. He estimates that brand issues cost Tesla approximately 80,000 deliveries in the quarter. The company’s struggles extend beyond delivery numbers; Tesla faces challenges with its Cybertruck rollout, which has shipped fewer than 50,000 units, far below the 250,000 promised to investors. Additionally, Tesla’s lineup lacks the excitement it once had compared to competitors like BYD, now the world’s largest EV manufacturer. Elon Musk’s ambitious plans for a robotaxi business remain uncertain due to ongoing struggles with autonomous driving technology. Meanwhile, Tesla vehicles have become stigmatized, facing vandalism and ridicule. JPMorgan analyst Ryan Brinkman noted that the first-quarter results confirm the extent of brand damage previously feared.
— new from Futurism
