Last hour: Tesla Stock falls, costing Elon Musk over $ 17 billion
Tesla’s actions made a strong immersion on July 24, 2025, following a clear warning by CEO Elon Musk regarding the company’s demanding future, triggered by the imminent expiry of tax credits for electric vehicles (EV) in the United States. The stock collapsed by over 4% in negotiations after another, erasing a significant market value and breaking Musk’s personal fortune, which has decreased by over $ 17 billion, according to the estimates of the Bloomberg billionaire index. This dramatic decline emphasizes the growing pressures on Tesla as it sails in a turbulent panorama of the market marked by the decline in sales, intensifying the competition and moving political dynamics.
The catalyst of this market upheaval was the report on the profits of the second quarter of Tesla, which revealed a 16% drop in net profit to $ 1.17 billion and a 12% drop in revenue at $ 22.5 billion, unless Wall Street expectations of $ 22.74 billion. The deliveries of Tesla electric vehicles also collapsed by 14%, with only 384,000 units delivered compared to the previous year. These disappointing figures were aggravated by Musk’s candid admission during a call of investors that the expiry of the $ 7,500 federal tax credit, which will be held on September 30, 2025, could lead to “some difficult quarters” for the company. This political change, implemented under the administration of President Donald Trump, eliminates a key financial incentive that has strengthened Tesla’s sales, in particular in the United States, its largest market.
The impact of the expiry of the tax credit is significant, as it directly affects Tesla’s convenience in a market in which prices sensitivity is increasingly critical. The competitors, in particular the Chinese car manufacturer, have gained land with low -price electric vehicles, such as the byd seagull, which is sold in detail for about $ 10,000. On the contrary, Tesla’s early budget model, often indicated as model 2 or model Q, should not launch until the end of 2025 and it is expected that it will cost about $ 25,000, putting it at a competitive disadvantage. In China, Tesla deliveries from its Shanghai factory decreased by 49% in February 2025, marking the lowest level since July 2022, while Byd recorded an increase of 161% of sales for the same period, offering over 318,000 vehicles.
In addition to the challenges of the market, Tesla is grappling with reputation issues related to Musk’s polarizing political activities. Its high -profile role as a councilor of Trump and his leadership of the Government’s efficiency Department (Doge) have aroused criticism and aroused protests against Tesla. Acts of vandalism that aim to vehicles and showroom Tesla have been reported globally, in particular in Europe, where sales collapsed by 45% in key markets such as Germany, France and Norway. In Germany, Tesla recordings decreased by 76% in February, partly attributed to Musk’s controversial support for the alternative party of Für Deutschland of the far -right. These accidents have fueled the perception of the fact that the Tesla brand is becoming a political lightning rod, alienating some consumers.
Musk’s strategic pivot towards autonomous driving and artificial intelligence (AI) has also raised concerns among investors. During the call of profits, he underlined Tesla’s ambition to launch a robotaxi service to 50% of the United States population by the end of the year, pending regulatory approval. A pilot program is underway in Austin, Texas, but the first tests have been spoiled by accidents, including a robotaxi that turns into the arrival traffic. While Musk insists that Tesla should be assessed as a robotics and rather than a traditional car manufacturer, analysts wonder if these initiatives can compensate for the company’s main car struggles. The decline in regulatory credit sales, which fell from $ 890 million to $ 439 million on an annual basis, further erodes a flow of revenue once he is profit.
Despite these challenges, some analysts remain cautiously optimistic. Wedbush Securities maintains an “overperformed” evaluation on Tesla, with a price of 12 months of $ 550, citing a potential recovery through autonomous driving technology and a more convenient model of vehicles. However, others, such as UBS Joseph Spak’s analyst, have cut the forecasts, providing for a 5% drop in the 2025 deliveries. The market capitalization of Tesla, which now wanders around $ 800 billion, has lost almost $ 900 billion from its peak in December 2024, reflecting the discomfort of investors.
Since Tesla has to face a perfect storm of economic, competitive and political winds, Musk’s ability to lead the company through this crisis will be fundamental. The next quarters will verify if Tesla can regain the base or if its domain in the electric vehicle market is truly at risk. For now, the market reaction speaks of volumes: the volatility of Tesla’s stocks and the luck that are narrowing of Musk report a fundamental moment for the company and its enigmatic leader.
