Tesla shares fell for a seventh consecutive day, hitting their lowest level since January 2023, as worries continue to grow leading up to the company’s first-quarter earnings report on Tuesday. The stock closed at $142.05 on Monday, dropping by 3.4% and marking a 43% decline for the year, ranking it as the second-worst performer in the S&P 500 index.

The electric vehicle company implemented price reductions in the U.S., China, and Europe, with cuts of up to $2,000 on popular models like the Model Y SUV and entry-level Model 3 sedan. Additionally, they slashed the price of their Full Self-Driving (FSD) option by one-third, now priced at $8,000 upfront and $99 for a monthly subscription, down from $12,000 or $199 per month.

Adding to the investors’ concerns are the recent weak first-quarter deliveries, company layoffs, and a Cybertruck recall due to a “trapped pedal” defect, affecting 3,878 vehicles. Tesla had previously notified employees of a global workforce reduction of over 10%, and the layoffs are still ongoing.

Analysts anticipate a 5.1% revenue decline in Tesla’s first-quarter earnings, the first year-over-year drop since the second quarter of 2020. Bank of America analyst John Murphy mentioned a deteriorating sentiment towards Tesla and highlighted the focus on growth initiatives like the Model 2 platform and the robotaxi.

Recent reports indicated that Tesla’s plans for the Model 2 have been put on hold in favor of prioritizing the development of a robotaxi. With concerns about negative free cash flow, investors will closely watch automotive gross margins and free cash flow as key metrics in the upcoming earnings call.

Tesla’s short sellers are profiting from the stock’s decline, with short interest estimated at 111 million shares, representing $16.3 billion, according to S3 Partners. These short sellers have gained around $9.4 billion this year, making it the most profitable short in the U.S. market.