Tesla share price: what's the outlook after worst ever start to a year?

Tesla share price is slightly rebounding after the company's shares fell 43% this year. The electric car company’s stock is trying to recover after a worse-than-expected Q1 earnings report, struggles meeting vehicle shipment deadlines, and reports of declining auto sales.

Tesla shares rise after cutting vehicle prices

Tesla’s Model 3 sales jumped from 10,050 in April to 13,950 in May after the corporation cut the cost of the vehicle to $35,000. Chief executive officer (CEO), Elon Musk, noted in an email to employees that investors still supported Tesla despite reporting large losses in Q1.

‘It is important to bear in mind that we lost $700 million in the first quarter this year, which is over $200 million per month. Investors nonetheless were supportive of our efforts and agreed to give us $2.4 billion (our net proceeds) to show that we can be financially sustainable’, said Musk.

How will Tesla shares perform before manufacturing the Model Y in California?

Tesla hopes to increase sales with its upcoming Model Y sport utility vehicle (SUV). Musk said that the car company has restructured its Fremont, California factory to ramp up production of the SUV.

‘Right now our default plan actually is to produce the [Model] Y at Fremont. I was sceptical about whether this made sense at first, but my team convinced me the fastest way to get to volume production is to do the Y at Fremont,’ said Musk.

Cornerstone Macro technical analyst, Carter Worth, believes that Tesla shares have fallen so much that the stock is a buy for investors. Worth is taking a contrarian view of the stock.

‘Tesla has undershot by such an amount that actually it’s so bad, it’s good,’ said Worth.

Tesla has positive 2019 outlook

Despite Tesla's current challenges, the corporation has a positive outlook for 2019 vehicle deliveries. Tesla forecast 360,000 - 400,000 car deliveries for the year. The corporation also predicts 45-65% year-over-year growth in 2019.