Its worst stock drop in a year
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Tesla’s It hit a huge sales record, but that didn’t stop its shares from being punished by investors.
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Shares are down 8% even though deliveries are up 25% year over year.
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Even as Musk invests in robotaxis and humanoid robots, the company’s electric vehicle business is still going strong.
Tesla’s deliveries indicate sales is recovering — but investors still gave up on the stock Thursday.
shares Elon Musk’s electric vehicle manufacturer It fell as much as 8% on Thursday, even though the company beat Wall Street’s delivery estimates for the second quarter. If the losses continue, this would be Tesla’s worst single-day loss in a year.
Tesla delivered 480,126 units EVs 25% increase in the second quarter from year to year. The numbers easily beat Wall Street’s expectations, given the consensus estimate of 396,466 EVs for the quarter, according to Bloomberg. A separate consensus compiled by the company suggested deliveries would reach 406,024 vehicles.
The latest figures are a sign that Tesla sales are largely recovering. Reaction to Elon Musk There will be a sharp decline in the US EV market in 2025.
Shares fell into the red in the afternoon after gaining 2% in the early morning hours. to stockIt has been an unstable few years due to Musk’s increasing involvement in US politics.
Like many of its rivals, Tesla is struggling with a so-called problem. “EV winter” After the $7,500 tax credit for new electric vehicles in the U.S. expires in September.
Total electric vehicle sales in the US fell 27% in the first three months of the year, according to data from Cox Automotive, and a wave of electric vehicle models have emerged since then. disappeared from the market While automakers are pulling back on ambitious EV targets due to weak demand.
But a increase in natural gas prices The industry seems to have been hit hard by the war in the Middle East. Data from Kelley Blue Book, an automotive research firm, estimates that U.S. EV sales topped 85,000 in May; This is the highest figure since the EV tax credit was repealed in September 2025.
In February, before the war began, average U.S. gas prices were just under $3 per gallon. It peaked in May at about $4.56 per gallon, according to AAA.
Stephanie Valdez-Streaty, director of industry insights at Cox Automotive, told Business Insider that Tesla’s second-quarter sales increased as follows: high gas prices.
Valdez-Streaty said this increase comes mainly from markets like Europe, which has seen a boom in EV sales in recent months. Meanwhile, he added, the growth of alternative fuel vehicles in the US is focused on hybrids, which Tesla does not sell.
