As Tesla (TSLA+1.13%) prepares to report its first-quarter 2025 earnings after the bell Tuesday, investors are watching closely for updates on two long-delayed projects: the company’s affordable EV and its autonomous robotaxi platform.
The two initiatives once were expected to define Tesla’s next chapter — but concerns about CEO Elon Musk’s political entanglements are clouding the outlook. Analysts, including Wedbush’s Dan Ives, have voiced worries that Musk’s leadership focus has splintered. Since accepting his controversial role in the Trump administration’s Department of Government Efficiency, Musk has faced protests and backlash that analysts say may be affecting the brand.
Tesla’s stock has plunged 40% year-to-date, impacted by falling deliveries, fierce competition from Chinese EV giants like BYD (BYDDY+2.70%), and political headwinds. But there’s one group of investors that’s thriving: short sellers.
According to S3 Partners, traders betting against Tesla have made an estimated $11.5 billion in profits so far this year — making it the most profitable short globally, surpassing Nvidia (NVDA+0.54%). Short interest has climbed 15% as bearish sentiment builds.
Public perception is also shifting. A recent CNBC (CMCSA+1.99%) All-America Economic Survey found that 47% of Americans now hold a negative view of Tesla, indicating significant potential challenges for the brand’s image.
Shares rose about 5% Tuesday amid a pre-earnings and larger market bounce. But with investor nerves fraying, Tesla’s Q1 report could be a decisive moment in the company’s 2025 story — for bulls and bears alike.
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