Tesla stock was rising early Monday after enduring a terrible Friday—like most other U.S. stocks.
New worries about the economy and demand have helped send shares down some 30% from a record close of almost $480 a share on Dec. 17.
The electric vehicle maker’s stock was up 0.4% at $339.37 in premarket trading, while the S&P 500 and Dow Jones Industrial Average futures were 0.6% and 0.7%, respectively.
Monday’s move follows Friday’s 4.7% drop, which was catalyzed by soft economic data. Walmart’s weak outlook spooked investors on Thursday, and the consumer sentiment data were weaker than expected Friday.
Few stocks were spared. The Nasdaq Composite dropped 2.2%, and roughly three out of four stocks lost ground on Friday.
Tesla shares must overcome those mounting economic fears to recapture some of their recent momentum. They will also have to overcome growing fears about first-quarter deliveries.
“It’s very clear Tesla 1Q deliveries are going to miss Wall Street expectations,” wrote Future Fund Active ETF co-founder Gary Black on X over the weekend. He estimates about 380,000 cars will be delivered. Wall Street currently projects 422,000.
“What’s not clear is the cause,” added Black. There could be some brand damage from CEO Elon Musk’s increasing activity in Washington, which could turn off left-leaning buyers traditionally more willing to go electric than Republicans.
There is also a model change with Tesla selling a new version of its most popular vehicle, the Model Y. Some buyers might be waiting for the all-new lower priced Tesla due to be released around the middle of the year.
Black, for his part, believes any brand damage will be temporary and growth will accelerate to “20% to 25%” annually between 2025 and 2030.
Time will tell if he’s right. For now, investors need to brace for weak first-quarter numbers amid a softening economy.