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Tesla stock falls to $293 after Elon Musk announces plans to start a political party.
Vehicle deliveries drop 13% as BYD outpaces Tesla in global EV sales.
Cybercab and Robovan highlight Tesla's robotaxi ambitions despite safety concerns.
Tesla Inc. (TSLA) is trading at $293.94, showing a significant price decline. The stock traded with intraday highs of $297.51 and lows of $288.86. This drop mirrors growing investor apprehension as several recent developments have impacted Tesla’s standing.
Tesla’s stock plummeted approximately 7%-8% after CEO Elon Musk tweeted that he was going to launch a new political party called the “America Party”. This surprising move sent shudders through investors. Many of them think Musk’s political endeavors might distract him from running Tesla, particularly when the company confronts pressure by way of surging competitors and decelerating sales.
Tesla’s stock price plummet also wiped out an estimated $15 billions of Musk’s wealth. The market response illustrates just how closely Tesla’s fate is linked to Musk’s moves and persona.
Tesla’s stock has been additionally battered by recent shifts in US government policy. New bill backed by Donald Trump removes $7,500 EV tax credit. It removed some of the emission credits that had benefited electric car manufacturers like Tesla.
Without the tax credit, Tesla is less affordable for U.S. customers. This shift may cause Tesla's demand to fall, causing it to come under pressure to sustain sales and profit. Analysts have lowered Tesla’s stock, anticipating these modifications to hurt the company’s bottom line.
Tesla’s latest delivery figures have only piled on more pressure. For the first half of 2025, it posted a 13% year-on-year drop in vehicle deliveries. In Q2, Tesla delivered roughly 384,122 vehicles, far below analysts’ estimates.
Meanwhile, competitor BYD posted stout figures as well. The Chinese firm shipped more than 606,000 EVs during the quarter as well. BYD posted higher profits than Tesla, indicating that it is quickly catching up in the EV race. This pivot indicates Tesla is falling behind, particularly in markets where cost and diversity are key.
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Tesla debuted its long-promised robotaxi service in Austin, Texas, in late June 2025. The service leverages Model Y vehicles and features human safety drivers for the time being. Which aims to transition to completely autonomous ride-hailing in the near term.
The launch is a significant achievement, but it has not come without trouble. There’s been news of technical issues such as sudden braking and wrong turns. U.S. safety regulators are now investigating the service’s behavior. Tesla intends to launch new robotaxi models like the Cybercab and Robovan within the next two years. These vehicles are still in testing phase.
The robotaxi project is bold and highlights Tesla’s foresight. Technical setbacks and regulatory reviews are risks. These are the issues that Tesla needs to solve if it wants to dominate autonomous driving.
Elon Musk’s increasing political activism has Tesla shareholders are concerned. Even big institutional investors like Norway’s Storebrand, which has billions of dollars in Tesla stock, have been worried about Musk getting distracted from the company.
Other shareholders have begun to offload Tesla shares, particularly those uneasy with the firm’s ambitious move toward self-driving cars without a definitive safety track record. Activist groups have started to organize protests, urging consumers to boycott Tesla products. These campaigns, called the “Tesla Takedown”, are taking place around the world.
Some have even turned to vandalism against Tesla showrooms. Protesters want insurers to hike Tesla rates, as they claim that the EV leader’s safety standards are lacking
According to technical analysts, Tesla’s stock currently has support levels at $285, $265, and $225. These are prices where the stock might stop falling and possibly bounce back. On the other hand, resistance levels are noted around $318 to $365. These are price points where the stock may struggle to move higher unless positive news or strong earnings support the rally.
The recent downward trend has weakened investor confidence. Analysts are keeping a close eye on the upcoming second-quarter earnings report, scheduled for July 23, 2025. That report will provide more details about the company’s financial health, vehicle sales, and plans.
For Tesla to recover its stock price and rebuild investor confidence, several steps may be necessary. First, the company might need to stabilize vehicle deliveries and improve production efficiency. Second, stronger communication with shareholders and a clear focus from leadership could help calm concerns.
The success of the robotaxi program will also be critical. If Tesla can prove that the service is safe, reliable, and scalable, it may open up a new revenue stream that strengthens the company’s position in the mobility market.
The upcoming earnings report will be a key moment for Tesla. Investors and analysts are looking for solid financial results and a clear explanation of how Tesla plans to grow in a more competitive and regulated environment.
In the short term, Tesla’s stock may continue to face volatility. Global economic trends, changes in regulations, and executive decisions will all play a role in shaping the company’s path forward.
Despite recent setbacks, Tesla remains a major force in the electric vehicle and technology sectors. Whether it can maintain that position depends on how it responds to today’s challenges and opportunities.
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