Tesla Stock (TSLA) has slid over the last 24 hours, following a poor Q4 delivery report and a controversial Cybertruck explosion. On January 1, a Tesla Cybertruck parked outside Trump Hotel in Las Vegas, NV mysteriously exploded, leaving one person dead and several injured. The deceased driver, a US Army special forces operations sergeant according to sources, is suspected to have set off the explosion intentionally. In the past five days, Tesla’s stock is down 18%, with yesterday sparking a further drop.
In addition to the Cybertruck explosion controversy, Tesla is down amid a Q4 2024 delivery failure. For the quarter, Tesla said it delivered 495,930 vehicles globally, missing analyst estimates of around 510,400 as compiled by Bloomberg. Despite this failure to meet expectations, the sales are still up compared to Q3 and Q2 2024.
For 2024, Tesla delivered 1.78 million vehicles, missing analyst estimates for 1.8 million and resulting in a total below 2023’s 1.8 million vehicles delivered. This is the first year-over-year decline for Tesla, hinting that new competition, demand, and global economic conditions may be hurting the company.
Potential Remains For Tesla Stock in 2025
Despite the recent tumble, there is still optimism around Tesla stock for 2025. Several price predictions project new highs for TSLA to come. “Looking to FY25, we remain highly confident in Tesla’s ability to accelerate delivery growth into FY25 with 20%-30% delivery growth targets the focus for the Street as TSLA is also expected to launch its lower-priced EV in early 2025 to spur growth for vehicle deliveries,” Wedbush analyst Dan Ives wrote in a note to investors Thursday morning.
Also Read: AMZN, MSFT and GOOGL To Benefit From AI Stock Surge in 2025
At press time, TSLA stock is down to 377.03, nearly 30 points from its previous close. Tesla investors expect the stock to climb this year in part thanks to other developments from the company outside of EVs. While its electric vehicles are the core of the company’s profits, the EV maker also hopes to splash in other technology fields. Elon Musk has long hinted at autonomous driving and robotaxi networks powered by Tesla’s AI systems. This vision is becoming a reality as the company enhances its Full Self-Driving (FSD) software. Successfully launching this software will certainly peak investors’ interest, as they are already hyping TSLA stock ahead of 2025.