Tesla shareholders to ‘throw in the towel’ as company set for worst result in 7 years

Tesla shareholders are to be hit with the company’s worst results in seven years as Elon Musk’s woes in the EV markets continue.
This week, Tesla’s results for the first quarter of 2023 will be published.
They come after a challenging time for Tesla as competition in China hurts the company’s sales.
Musk recently announced that 10 percent of the company’s global workforce will be laid off as a result.
The billionaire’s misery was compounded last week when all Cybertrucks were recalled due to a fault with the accelerator pedal.
READ MORE: Tesla slashes car prices by $2,000 around world after rocky week for Elon Musk
As reported by the Financial Times, investors are now weary that Tesla could either further establish itself as an EV giant or retreat into becoming a smaller producer.
Tesla investor Christopher Tsai from Tsai Capital has said he expects Tesla to lose market share but adds that “we also believe the company will increase production and deliveries substantially in the years to come and further its lead in autonomous driving”.
However, Deutsche Bank analyst Emmanuel Rosner gives a more concerning analysis of Musk and Tesla.
He said: “We view Tesla’s shift as thesis-changing, and worry the stock will need to undergo a potentially painful transition in ownership base.
“Investors previously focused on Tesla’s EV volume and cost advantage will potentially throw in the towel and eventually be replaced by AI/tech investors with longer time horizons.
“There is a considerable risk from going [all in] for autonomy.”
On Friday, Tesla slashed prices for three of its five models in the US.
They followed this up by cutting prices around the globe in major markets such as China and Germany.
The price cuts put a Model Y at $42,990, $72,990 for a Model S, and $77,990 for a Model X.
Dan Ives, senior equity analyst at Wedbush Securities, added: “This is another black eye for Tesla, which has added to the chaos going on for Musk. Cybertruck is the pedestal moment and a recall out of the gates is a bad look.”