Tesla stock (NASDAQ: TSLA) faced significant volatility this week, tumbling more than 8% in after-hours trading to $260.10 following a wave of troubling news, from disappointing Q1 delivery results to CEO Elon Musk-related speculation and a new round of tariffs announced by former President Donald Trump.

• Q1 2025 deliveries fell short of expectations, marking Tesla’s worst quarterly drop in history.
• Stock surged temporarily due to rumors that Musk might distance himself from Dogecoin (DOGE) before dropping again after Trump’s tariff announcement.
• Analyst sentiment turned cautious, with some lowering price targets and questioning the near-term outlook.
• Future catalysts include Tesla’s robotaxi launch and a lower-cost EV model.

Tesla Misses Q1 Delivery Estimates by a Wide Margin

Tesla reported 336,681 vehicle deliveries for the first quarter of 2025 — more than 10% below consensus estimates and around 20,000 units short of the most conservative forecasts. The year-over-year decline of 13% marks the steepest quarterly drop in the company’s history.

Several analysts linked the shortfall to an ongoing Model Y refresh, which may have disrupted production schedules. However, concerns are growing that Elon Musk’s political activity is beginning to weigh on consumer sentiment.

“This fuels investor fears that Musk’s political distractions are starting to hit demand,” wrote Baird’s Ben Kallo.

CFRA’s Garrett Nelson cut his price target from $385 to $360 but remains optimistic about a rebound in Q2. Meanwhile, Canaccord Genuity’s George Gianarikas offered a more colorful response, simply writing “owie” in a note to clients, while cautioning it’s too early to determine lasting brand damage.

Musk Rumors Briefly Boost Tesla Stock

Interestingly, Tesla’s stock rebounded mid-week after Politico reported Musk may be preparing to step away from his association with Dogecoin. While the White House dismissed the report as “garbage,” investors responded positively, pushing TSLA as high as $282.76 — a 5.3% gain — before the next wave of bad news arrived.

Trump Tariffs Slam Tech, Auto Outlook

Former President Donald Trump’s surprise tariff announcement Wednesday night sent shockwaves through tech and auto sectors. The proposed levies — including 34% on China and 32% on Taiwan — spooked markets, with major tech firms like Apple, Alphabet, and Amazon dropping sharply in after-hours trading.

“Worse than the worst-case scenario,” said Wedbush analyst Dan Ives, warning that tech and EV stocks would face major pressure from escalating trade tensions.

What This Means for Tesla and the EV Market

Tariff Impact Could Hit Auto Sales Hard

According to BofA analyst John Murphy, the new tariffs could reduce U.S. auto sales by up to 3 million vehicles, as rising costs on imported car parts trickle down to consumers. For Tesla, which sources materials globally, this could strain margins and demand.

Tesla’s Path Forward: Robotaxis and Affordable EVs

Despite headwinds, Tesla is pushing forward with plans to launch a lower-priced EV model and introduce a robotaxi service in 2025.

Deutsche Bank analyst Edison Yu expects the new entry-level vehicle to debut in the U.S. first, followed by Europe and China. However, he cautions it may not be a major growth driver, projecting 1.7 million Tesla deliveries in 2025, slightly below last year’s 1.8 million.

More attention is now focused on Tesla’s robotaxi launch, anticipated to begin in Austin, Texas this June. If successful, the self-driving cab initiative could provide a major boost to the company’s innovation narrative and long-term stock performance.

Upcoming Catalyst: Tesla’s Q1 Earnings on April 22

Investors won’t have to wait long for more clarity. Tesla is scheduled to report its Q1 2025 earnings on April 22, where markets will be watching for:

• Updates on robotaxi development and launch timeline
• Commentary on delivery shortfalls and expected Q2 recovery
• Analysis of tariff impacts on supply chain and pricing
• Any insight into Musk’s brand management or DOGE association

Finally, Tesla is at a crossroads as it navigates a rocky start to 2025. Between delivery challenges, tariff shocks, and CEO-related speculation, the company’s short-term outlook is murky. However, upcoming initiatives like affordable EVs and autonomous ride-hailing services offer long-term promise.

Investors should watch closely as the April 22 earnings report may offer a clearer roadmap for the EV giant’s next chapter.