Shares of Tesla are on track to break an eight-week losing streak, though the stock pulled back slightly in early trading on Thursday as investors turned their attention to the company’s upcoming earnings and longer-term strategy.
The stock fell around 1.6% to $384.91, even as the S&P 500 and the Dow Jones Industrial Average moved higher.
Rally positions Tesla for weekly gains
The decline follows a sharp rally in the previous session, when Tesla shares jumped around 7.4%—their strongest single-day gain since June 2025—amid a broader rebound in growth stocks.
Chief Executive Officer Elon Musk also posted an image of new Tesla chip hardware, which appeared to contribute to positive investor sentiment.
The recent surge has left Tesla stock up 12.1% for the week, effectively ensuring it will snap an eight-week losing streak that had seen shares fall about 16%.
Earnings in focus
Investor attention is now shifting to Tesla’s first-quarter earnings report, scheduled for April 22.
Given the scale of retail participation in Tesla stock, investors globally will be closely tracking its moves on their online investment apps ahead of the company’s earnings.
Wall Street expects earnings per share of 38 cents, compared with 27 cents in the same period a year ago.
The anticipated increase is partly driven by higher vehicle deliveries, which rose to approximately 358,000 units in the first quarter of 2025 from 337,000 previously.
However, market participants are likely to focus less on near-term financials and more on management commentary regarding Tesla’s artificial intelligence initiatives, including robo-taxis and humanoid robotics.
Cybertruck demand raises questions
Separate data has raised concerns about the strength of demand for Tesla’s Cybertruck.
According to a Bloomberg report citing S&P Global Mobility data, SpaceX accounted for 1,279 Cybertruck registrations in the United States during the fourth quarter—more than 18% of the total 7,071 vehicles registered during the period.
Other companies linked to Musk, including xAI, The Boring Company, and Neuralink, acquired an additional 60 vehicles.
These internal purchases suggest that nearly one in five Cybertrucks registered during the quarter were sold within Musk’s broader business network.
Without these transactions, registrations would have declined by 51%, highlighting potential weakness in consumer demand less than two years after the vehicle’s launch.
AI strategy drives valuation narrative
Despite questions around its core automotive business, Tesla’s valuation continues to hinge largely on its ambitions in artificial intelligence.
The company is expected to expand its robo-taxi service, first launched in Austin, Texas, in June, and to unveil a new generation of its Optimus humanoid robot.
Progress on these initiatives is seen as critical, with much of Tesla’s estimated $1.6 trillion valuation tied to expectations of future AI-driven earnings growth.
Tesla is also taking early steps toward building out its semiconductor capabilities through its proposed “Terafab” initiative.
Executives have approached suppliers, including Applied Materials, Tokyo Electron, and Lam Research, to gather pricing and delivery timelines for chipmaking equipment, as per a Bloomberg report.
The effort spans a wide range of tools, including photomasks, substrates, etchers, deposition systems, and testing equipment.
Tesla has also sought support from Samsung Electronics, which instead reportedly proposed allocating additional manufacturing capacity at its planned facility in Taylor, Texas.
Meanwhile, Intel has indicated it will participate in the initiative, with Chief Executive Officer Lip-Bu Tan sharing an image of Musk during a recent visit to the company’s Santa Clara office.
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