Tesla (NASDAQ:TSLA) shares are actually flat versus 2 April, also known as ‘Liberation Day’ — the day that the US President announced his global tariff policy.
That may come as a surprise to some investors, given that Trump’s trade policies have generally been poorly received internationally and have weighed on the global perception of US companies. Needless to say, Tesla, due to Elon Musk’s association/part within the administration, has seen its reputation suffer more than most.
Interestingly, the pound has actually appreciated around 2% versus the dollar since 2 April. As such, £10,000 invested then would actually be worth around £9,800 today as a result.
Not a lot of love for Tesla
Tesla’s recent results have been notably disappointing. In the first quarter of 2025, Tesla reported a 13% year-over-year drop in vehicle deliveries, with just 336,681 despatched compared to nearly 387,000 in the same period last year.
This slump translated into a 20% drop in automotive revenue and a staggering 71% plunge in quarterly profit, falling from $1.4bn to $409m. The company’s stock price has also suffered, losing 44% of its value so far this year.
Tesla’s reputation, once synonymous with innovation and environmental progress, is now facing significant challenges. The brand’s close association with Musk, whose political activities and polarising public persona have alienated many traditional (liberal) Tesla supporters, has also contributed.
There are some very obvious examples of this. Secondhand values have fallen. And this faster depreciation has seemingly contributed to much higher leasing prices — although the new Model Y is more expensive than its predecessor anyway.
Musk’s promise
Musk has positioned Tesla’s future squarely on breakthroughs in robotics and autonomous driving, promising investors a transformative era ahead. He’s declared 2025 a “pivotal” year, emphasising the launch of the Optimus humanoid robot and the rollout of a fully self-driving robotaxi service. These are central to the next phase of growth.
The company aims to produce several thousand Optimus robots this year, with Musk expressing confidence that these units will be performing useful tasks by year-end. It’s something I’m watching very keenly.
On the autonomous driving front, Tesla’s accelerating development of its Full Self-Driving (FSD) technology, which Musk believes is key to unlocking massive new revenue streams. The company plans to pilot its robotaxi service in Austin by June and expand to other US cities by year-end. The ambition is to have millions of autonomous vehicles operating within the network by 2026.
I should note that I was a little sceptical until last weekend. My Tesla started driving itself when I tried to engage cruise control. Seemingly, this is just an Autosteer beta, but it was very impressive.
Musk envisions these advancements propelling Tesla to become the world’s most valuable company, potentially worth more than the next five largest firms combined. Personally, I think there’s a lot of execution risk, which, coupled with the valuation, is why I’m not investing. But I do want to see Tesla succeed.
