LiveOne (LVO) Takes a Hit: Shares Plunge 20% After Amended Tesla Deal, Now PRISM AdTech’s Biggest Laggard

LiveOne (NASDAQ: LVO) shares dropped by 20% Tuesday after announcing an amended partnership with Tesla (NASDAQ: TSLA), making it the largest laggard in the PRISM AdTech and Media Index.

Starting December 1, Tesla will stop subsidizing LiveOne products for some customers. However, LiveOne plans to offer discounted music packages to all Tesla customers. As part of the partnership, Tesla will replace its streaming button with LiveOne’s, and continue paying for existing users in perpetuity.

In response to the changes, LiveOne has adjusted its financial guidance for FY2025, now expecting revenue between $120M and $135M, and adjusted EBITDA of $8M to $15M—down from prior guidance of $140M-$155M and $16M-$20M in adjusted EBITDA.

CEO Robert Ellin emphasized the growth potential, stating, “We’ll drive growth, unlock new revenue streams, own our data, and increase ARPU. To be conservative, we are adjusting FY2025 revenue guidance.” Despite the adjustment, the company reaffirmed its $12M buyback program and officially retired 4.2M shares, reducing the total to approximately 94M.