Tesla's recent earnings report has sent ripples through the market, impacting the AXS TSLA Bear Daily ETF (TSLQ). The electric vehicle giant reported Q4 2024 earnings that fell short of Wall Street expectations, with earnings per share at $0.73 and revenue at $25.71 billion, both missing analyst estimates. This has led to a decline in Tesla's stock price, as investors react to the company's first annual delivery decline and concerns over aggressive price cuts affecting profitability. Additionally, Tesla's operating income and net income saw significant drops, further fueling bearish sentiment around the stock.
The market's reaction to Tesla's earnings has been compounded by broader industry challenges. The electric vehicle sector is facing increased competition and market volatility, with companies like Ford and Rivian adjusting their strategies in response to softer demand. Tesla's ambitious plans for autonomous driving and energy storage growth are also under scrutiny, as the company navigates a complex landscape of regulatory requirements and competitive pressures. These factors have contributed to a cautious outlook for Tesla, influencing the performance of ETFs that track its stock.
The AXS TSLA Bear Daily ETF (TSLQ) rose to $27.37, up 3.91% as of 10:00 AM ET on February 5th.