Tesla Faces Inventory Questions Amid Declining Demand, Tariff Impact

Tesla's stock has faced significant challenges, marked by a 13% decline in Q1 2025 deliveries compared to the previous year, falling short of analyst expectations. Concerns about CEO Elon Musk's political activities and their impact on brand perception have contributed to a growing unease among investors, with a recent poll indicating that 36% of Americans hold a 'very unfavorable' view of him. Additionally, the Cybertruck's sales have been disappointing, with nearly 2,400 units unsold and a recall issued for quality issues. As competition in the electric vehicle market intensifies, Tesla is also losing ground in key markets like China and Europe. In response to declining sales, the company plans to update its older models, aiming to rejuvenate its aging lineup. Analysts predict that unless these changes yield positive results, Tesla's stock may continue to struggle amidst increasing competition and brand challenges.