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Analyst Highlights Tesla (TSLA) ‘Quadruple Whammy’, Says Company Yet to Hit Rock Bottom

We recently published a list of 10 Buzzing Stocks After Latest Earnings Season. In this article, we are going to take a look at where Tesla, Inc. (NASDAQ:TSLA) stands against other buzzing stocks after latest earnings season.

Markets were cheering the latest US-China trade deal, after which the two countries will significantly reduce tariffs on each other’s imports for 90 days. The deal practically negates all bear cases modeled by Wall Street analysts based on the impact of tariffs.

Sylvia Jablonski, Defiance ETFs CEO and CIO, called the deal a “game changer” during a program on CNBC.

“I think both countries probably saw a little bit of the demise of what would be here with a non-tariff deal as the data came in. You had a lot of complaints around China across all sectors and then in the US, retailers were reaching out to President Trump and saying that shelves are empty and, you know, a lot of panic about semiconductor software companies. I think that this is really a game changer for both countries, and the big message here is that both countries, it sounds like, decided that they really don’t want to decouple, and, you know, make America great might also mean that, you know, China stays.”

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.

For this article, we picked 10 stocks currently making moves amid the latest earnings season. With each stock we have mentioned the latest hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Investors: 99

Steve Westley from The Westley Group said in a latest program on Schwab Network that Tesla, Inc. (NASDAQ:TSLA) may not have hit the rock bottom yet and pointed out the key problems visible in the company’s Q1 report.

“I mean Tesla’s had the quadruple whammy this quarter. No new product, no date for the $25,000 Tesla a lot of people are looking for in delayed uh launch of the new cheaper Model Y. They’ve got a polarizing brand, US sales down 13%, sales in Europe down 43% — that’s a lot. Huge and growing competition from BYD and the other Chinese were coming out there with lower cost vehicles, and FSD is late, paused rollout in China, no approval yet in Austin. Those are four pretty big problems to solve.”

Westley said that Tesla, Inc. (NASDAQ:TSLA) is facing declines when the overall EV industry is seeing growth:

“Look, this is a big miss on deliveries — 337,000 versus 380,000 estimate. Lat Q1 actually down. 19.34 billion, less than anybody expected. But what really stands out here is Tesla’s revenues are down 13%, but rest of the world EV gains are up 29%. That’s hard for the alleged market leader to explain. Share price again dropped 50% from December — that’s a loss of $800 billion. Punch line: it’s a rough quarter for Tesla, and they may not have hit rock bottom yet.”

The analyst is right. 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 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 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.”

Overall, TSLA ranks 4th on our list of buzzing stocks after latest earnings season. While we acknowledge the potential of TSLA as an investment, our conviction lies in the belief that under-the-radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.

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At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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