Tesla Bull Warns Of ‘Darker Times’ Ahead After Q1 'Disaster' — Retail Bets On Musk Refocusing

Shares of Tesla, Inc. tumbled over 8% in Wednesday's after-hours trading amid a broader market slide caused by President Donald Trump's unveiling of sweeping reciprocal tariffs.

Earlier in the day, the EV maker's stock dipped following data that showed Tesla delivered 336,681 cars in the first quarter, much lower than Wall Street's estimate. 

However, the stock rebounded to close the regular session in the green after media reports suggested CEO Elon Musk — who has been actively engaged with the Trump administration on efficiency initiatives — would shift focus back to his businesses in the coming weeks.

Last month, Musk said he expects to be a part of Trump's team for another year at least.

Tesla's most bullish backer on Wall Street also hopes the buzz is genuine.

In a note to clients on Wednesday, Wedbush analyst Daniel Ives said Musk was facing a "fork in the road decision" as he tries to balance leading the Department of Government Efficiency (DOGE) and Tesla.

"Our view is this situation is not sustainable, and the longer Musk stays at DOGE, the more risk there is to the Tesla story," said Ives, adding that the EV maker could face "permanent brand damage." 

While Wedbush said it remains "firmly bullish on the long-term Tesla story," Ives stressed that Musk "needs to get his act together or else, unfortunately, darker times are ahead for Tesla with today's disaster 1Q delivery number a stark reminder."

Wedbush maintained an 'Outperform' rating on Tesla, with a price target of $550 — the highest on Wall Street.

On Stocktwits, sentiment for Tesla remained 'bullish' late Wednesday night amid a more than doubling in message volume.

TSLA sentiment and message volume as of April 2. | source: Stocktwits

One user said reports of Musk leaving DOGE were "good for Elon and good for Tesla."

"If Tesla is just a car company, why is the stock up 5% after a huge miss on Q1 deliveries?" posted one user, with an image of Tesla's Optimus humanoid robot, which Musk has repeatedly said would overshadow everything else the company has built.

Analysts are largely bearish following Tesla's latest report. 

Baird believes factory retooling for the new Model Y was a significant factor in the Q1 delivery total but said Musk's political activities will "continue in the near term regardless."

Wells Fargo labeled the results a "big bust" and expects the shares to trade down as "deteriorating fundamentals continue to take the spotlight."

Barclays said the "weak" Q1 sets up a "challenging path" for even flat year-over-year volume in 2025 for Tesla.

Truist advised investors to remain focused on full self-driving updates that are "much more important for the long-term value of the stock."

Tesla shares have lost more than 27% this year.

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