Each day, 9amBusiness will bring you the latest economic and investor updates and today we look at Tesla’s share performance – now that the dust has settled on Elon Musk and Donald Trump’s spat.
Matt Britzman, senior equity analyst, Hargreaves Lansdown, tells us more: “Tesla shares slid 5.5% after Elon and the Tesla team failed to ignite a fire on last night’s earnings call. The numbers were objectively poor, but that was already expected, and shares were broadly flat on the initial release. The typical playbook for the past few quarters has been declining fundamentals but enough AI hype to keep investors sleeping at night.
“The mid-single-digit swing came off the back of the earnings call as Elon Musk warned the tough times could continue into 2026. The 5-6% swing for a more volatile name like Tesla is a relatively benign move, suggesting most investors already had this outlook on the cards.
“Tesla is in a very small cohort of companies with enough growth potential that investors are, for now at least, willing to look past weakening core financials. Last night’s comments confirmed many fears around tariffs, rising costs, tougher margins, and struggling cash flows. But with that now firmly built in as the base case, the AI story can take back the wheel.”