What Happened?
Shares of electric vehicle pioneer Tesla (NASDAQ: TSLA) fell 5.5% in the afternoon session after the company faced mounting concerns over its upcoming second-quarter delivery report and the potential impact of political tensions. Investors hit the brakes on Tesla ahead of its Q2 delivery numbers, with Wall Street analysts growing increasingly pessimistic.
Consensus estimates steadily declined, with some analysts forecasting a significant year-over-year drop in vehicle deliveries. Projections ranged from 355,000 to just under 400,000 vehicles, a notable decrease from the more than 440,000 cars delivered in the previous year. This anticipated shortfall was attributed to several factors, including a sales slowdown in Europe and China, where competition grew.
Adding to investor anxiety was a renewed public feud between CEO Elon Musk and President Donald Trump. The dispute raised concerns about the future of key EV tax credits, which were at risk of being eliminated under a new bill, potentially creating a significant headwind for U.S. sales.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Tesla? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Tesla’s shares are extremely volatile and have had 132 moves greater than 2.5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Tesla is down 19.9% since the beginning of the year, and at $303.75 per share, it is trading 36.7% below its 52-week high of $479.86 from December 2024. Investors who bought $1,000 worth of Tesla’s shares 5 years ago would now be looking at an investment worth $4,069.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.
