10 Stocks Everyone’s Talking About as Trump Blinks in Trade War

4. Tesla Inc (NASDAQ:TSLA)

Number of Hedge Funds Investors: 99

Jim Cramer in a recent program on CNBC explained why Tesla Inc (NASDAQ:TSLA) shares remained steady after a weak quarterly report, which he called “terrible.”

“Tesla reported one of the worst quarters of the year—I mean, it’s really terrible, it’s just dismal. But the stock soars more than 5%. Why? Because CEO Elon Musk is getting out of Doge. He’s spending more time with Tesla. That’s enough.”

Tesla Inc (NASDAQ:TSLA) EV sales are falling all over the world as the company faces challenges from competitors. Even if Elon Musk increases his focus to fix the company’s problems, it would take a lot of effort to come out of the demand crisis. For example, in California, the largest U.S. market for electric vehicle adoption and sales, Tesla Inc (NASDAQ:TSLA) sales fell about 12% year over year in 2024, causing its market share to drop from 60.1% in 2023 to 52.5% in 2024. Was it because Californians are buying fewer EVs? No. Californians purchased more than 2 million electric cars during the year, almost double when compared to the past two years.

Things aren’t looking good for Tesla in Europe, either. For example, in Germany, Tesla Inc (NASDAQ:TSLA) delivered just 1,429 new cars in February, down 76% from the same month last year. In contrast, battery-electric vehicle (BEV) registrations surged 30.8% during the month.

Aristotle Atlantic Large Cap Growth Strategy stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q1 2025 investor letter:

“The underweight in Tesla, Inc. (NASDAQ:TSLA) contributed to performance in the first quarter of 2025. Tesla’s automobile sales declined in the quarter, in part due to factory changeovers that were required for updates to the company’s best-selling vehicle, the Model Y. This resulted in slower sales volume in the quarter. Competition from China’s BYD is causing market share losses for Tesla in several non-U.S. markets. The CEO’s position as an advisor to President Trump has damaged Tesla’s brand image among a cohort of traditional electric vehicle buyers.”