Tesla Stock Ends Down Despite Record Sales
Tesla's stock experienced a rollercoaster ride today, initially surging on news of increased car sales, only to close down 5%. The mixed performance reflects investor skepticism about Elon Musk's company's turnaround prospects, despite a strong sales report.
Tesla reported a blowout number for the quarter, selling 497,099 vehicles. This figure, while impressive, was not as significant as some of its rivals, with Rivian Automotive reporting a 32% increase. The increase in Tesla sales was partly driven by US consumers rushing to buy before the $7,500 (€6,400) tax credit expired.
The company's stock has been boosted recently by optimism surrounding a new cheaper Model Y and the rollout of robotaxi and Optimus robots. Tesla officially launched its Robotaxi service in June 2025, starting in Austin, Texas, and expanding to the San Francisco Bay Area shortly after. Despite these positives, Tesla's stock closed down 5% due to lingering skepticism about the company's ability to sustain its growth.
Elon Musk's political and social activities have also impacted the company's sales. The anti-Musk backlash in Europe has been fierce, with sales plunging 40% in more than two dozen countries after he supported far-right politicians. Musk's departure from the Trump administration and criticism of Netflix have further alienated potential car buyers.
Tesla will report its third-quarter earnings later this month, with profits for the previous quarter falling 16% due to increased competition. Despite the recent sales increase, Tesla faces challenges in maintaining its growth momentum. The company's stock performance and sales figures will continue to be closely watched by investors and industry observers alike.
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