Tesla Stock: Cybertruck Recall and Weak Sales Pressure Share Price

Tesla, the leading electric vehicle manufacturer, faces mounting challenges that could significantly impact its stock performance. The company has initiated a recall of approximately 27,000 Cybertrucks due to a critical safety issue involving the rearview camera system. This marks the fifth recall for the vehicle since its launch last year, potentially eroding consumer confidence and impacting sales.

Analyst Skepticism Grows Amid Disappointing Figures

Compounding these issues, Tesla's recent delivery numbers have fallen short of analyst expectations, with only 462,890 vehicles delivered in the third quarter of 2024. This underperformance, coupled with a decline in earnings per share from $0.85 to $0.46, has sparked concerns among investors about Tesla's growth trajectory. Despite a modest increase in revenue to $25.50 billion, market experts have lowered their average price target to $198.25, well below the current trading price. As competition in the electric vehicle market intensifies, Tesla's ability to maintain its market position and regain investor trust remains uncertain.