We get quarterly results from EV maker Tesla after the close of trading on Tuesday. The company’s been dubbed one of the so-called “Magnificent 7” — a group of tech giants that also includes Apple, Alphabet, Amazon, Meta, Microsoft and Nvidia — whose stocks soared in 2023. 

But Tesla is not doing so great in 2024. Beset by stiff global competition, it’s been cutting prices and laying off workers. Tesla’s financial results are expected to be the big show on Wall Street Tuesday. 

“The stakes are very high,” said Garrett Nelson at CFRA Research. “The stock price is now down over 40%, after a year in which the stock price more than doubled.”

Tesla has struggled to ramp up production of its new Cybertruck, which faces a safety recall. And as consumer demand for EVs has slowed, Tesla has cut prices, hurting profit margins. Meanwhile, the global EV market that Tesla once dominated is now crowded. 

“There is quite stiff competition, and Tesla is being squeezed on both ends,” said Gernot Wagner at Columbia Business School.

At the low end, Wagner said China’s BYD is cranking out workaday EVs for under $20,000.

“On the high end there are dedicated EV companies like Rivian,” he said. “Porsche — you can buy literally a $100,000 vehicle by a company that consumers trust.”

Tesla still has some advantages: It’s a global leader in battery technology and operates an extensive network of vehicle chargers.