Tesla’s stock took a 6.8% nosedive Monday, leaving investors dizzy. The electric car giant’s troubles pile higher than a Cybertruck stuck in mud. A mix of political squabbles, vanishing tax credits, and robotaxis veering off course has Wall Street shaking its head.
Elon Musk, Tesla’s CEO, traded White House handshakes for social media sparring with President Donald Trump. Once Trump’s top donor in 2024, Musk has formed a new political party after slamming Trump’s tax bill. Analyst Dan Ives from Wedbush Securities called this a detour Tesla’s shareholders didn’t sign up for.
Ives, ever the Tesla cheerleader, urged the board to leash Musk’s political antics. He warned Tesla’s future hinges on autonomous tech, not Capitol Hill crusades. Musk’s reply on X? A curt “Shut up, Dan.”
Tesla’s financials aren’t sparking joy either. A new bill zaps the $7,500 EV tax credit, set to vanish by October 1. Worse, it scraps fines for gas-guzzling automakers, drying up Tesla’s $10.6 billion regulatory credit cash flow since 2019.
William Blair analysts downgraded Tesla’s stock to neutral, citing the credit crunch. Without those funds, Tesla might have stayed unprofitable until 2021. First-quarter net income already plunged 71% this year, and more red ink looms.
Musk bets Tesla’s future on robotaxis and AI, but the rollout’s bumpier than a potholed highway. The Austin pilot serves only diehard fans, with a Tesla employee babysitting the wheel. Videos show cars swerving onto wrong lanes or nudging parked vehicles.
Meanwhile, Waymo’s robotaxis cruise four cities without human chaperones. They’re gearing up for Miami and D.C. in 2026. Tesla’s expansion plans? Musk’s keeping mum, leaving investors guessing.
Sales are another sore spot. Tesla’s global deliveries dropped 13% in each of 2025’s first two quarters. The EV market grows, but Tesla’s slice shrinks as BYD, China’s EV king, overtakes it in annual sales.
BYD’s affordable models, some as low as $10,000, outshine Tesla’s pricier lineup. Western rivals also chip away with fresh EVs. Tesla’s answer? Deep discounts and a cheeky X post urging buyers to “yolo” before the tax credit expires.
Musk’s political stances haven’t helped. Protests swarmed Tesla showrooms in the U.S., Canada, and Europe earlier this year. His Trump ties alienated some buyers, and his new party pitch risks irking the other side.
Analyst Ives told CNN Musk’s knack for upsetting everyone is a rare feat. The drama, he said, fuels Tesla’s soap opera. Investors crave focus on cars, not political cage matches.
Tesla’s stock eked out a 1.3% rebound Tuesday, but the road ahead looks rocky. The Cybertruck flopped, and new models are scarce. Wall Street’s patience wears thin as Musk juggles politics and promises.
Some analysts see hope if Musk refocuses. Ives holds his $500 price target, betting on Tesla’s tech edge. But William Blair’s downgrade signals growing doubt.
The EV tax credit’s end could force price cuts, as seen in 2019. Tesla’s X post pushed urgency, but discounts may not stem the sales slide. BYD’s low-cost EVs keep the pressure on.
Tesla’s robotaxi dreams could still dazzle, but glitches and delays dim the hype. Waymo’s lead grows, and Musk’s silence on timelines doesn’t inspire confidence. Investors want results, not reruns of political theater.
The company’s fate rests on execution, not headlines. Musk’s ability to steer Tesla back to innovation will decide if it regains its spark. For now, the stock wobbles, and the world watches Tesla’s wild ride.
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