This article first appeared on GuruFocus.
Tesla (TSLA, Financials) faces new worries about electric car demand in a harder U.S. market in its next earnings release. The adjustment followed President Donald Trump’s policy changes that changed electric vehicle economics.
General Motors, Ford, and Stellantis have all warned about their EV operations. GM announced it would incur a $1.6 billion EV investment charge, and Ford CEO Jim Farley warned that demand might drop by half without the government $7,500 EV tax credit. Stellantis, Jeep and Chrysler’s parent company, will not electrify all its European cars by 2030.
Tesla faces the slowdown, but it’s stronger. Motor Intelligence data shows that the business has 43% of the U.S. EV market, down from nearly half a year ago but far ahead of any competitor. Tesla has announced cheaper Model Y and Model 3 models to offset rising effective prices.
Analysts see an opening. Automotive Ventures’ Steve Greenfield claimed legacy manufacturers’ retreat might help Tesla regain market share. He added Tesla customers are loyal and most will buy again. He cautioned that slower fourth-quarter sales and tighter profit margins might double hit the corporation.
Tesla stock has fluctuated this year. After a severe dip early in 2025, shares have risen 7% since January thanks to Elon Musk’s $1 billion September stock acquisition. Analysts predict third-quarter sales of $26.1 billion, up 3.5% from a year earlier due to lower demand and pricing pressure.
