Latest news: Tesla’s shares collapse, which costs Elon Musk more than 17 billion dollars.

Tesla’s actions collapsed on July 24, 2025, after a hard warning by executive director Elon Musk about the future complex of the company, caused by the imminent expiration of tax credits for electric vehicles (VE) in the United States. The shares collapsed more than 4% in each session, eliminating a significant market value and advising a hard blow to the personal fortune of Musk, which was reduced by more than 17,000 million dollars, according to estimates of the Bloomberg billionaire index. This drastic fall underlines the growing pressure on Tesla while navigating a turbulent market panorama, marked by the decrease in sales, the intensification of competition and changing political dynamics.

The catalyst in this commotion in the market was the report of results of the second quarter of Tesla, which revealed a 16% drop in net income, to 1,170 million dollars, and a 12% decrease in revenues, up to 22.5 billion dollars, lower than expected by Wall Street of 22,740 million dollars. Tesla electric vehicles were also 14%collapsed, with only 384,000 units delivered compared to the previous year. These disappointing figures were aggravated by the sincere admission of Musk, during a telephone conference with investors, that the expiration of the federal tax of 7,500 dollars, scheduled for September 30, 2025, could generate difficult quarters for the company. This policy change, implemented during the administration of President Donald Trump, eliminates a key financial incentive that has promoted Tesla sales, especially in the United States, its largest market.

The impact of the fiscal credit expiration is significant, since it directly affects Tesla’s viability in a market where price sensitivity is increasingly critical. The competitors, in particular the Chinese manufacturer, have gained ground with low -price electric vehicles, such as the Seagull Byd, whose sale price is around 10,000 dollars. On the other hand, the Tesla economic model, often known as Model 2 or Model Q, will not be launched until the end of 2025 and is expected to cost around $ 25,000, which places it at a competitive disadvantage. In China, Tesla deliveries from its Shanghai factory fell 49% in February 2025, the lowest level since July 2022, while Byd reported a 161% increase in sales during the same period, delivering more than 318,000 vehicles.

In addition to the market challenges, Tesla faces reputation problems related to Musk’s polarizing political activities. His outstanding role as Trump advisor and his leadership in the Government Efficiency Department (Doge) have generated criticism and provoked protests against Tesla. Vandalism acts against vehicles and concessionaires of Tesla worldwide have been reported, especially in Europe, where sales have collapsed 45 % in key markets such as Germany, France and Norway. In Germany, Tesla enrollments fell 76 % in February, partly attributed to Musk’s controversial support to the Alternative Für Deutschland party. These incidents have fed the perception that the Tesla brand is becoming a focus of political attention, moving away from some consumers.

Musk’s strategic turn towards autonomous driving and artificial intelligence (AI) has also raised restlessness among investors. During the presentation of results, he emphasized the ambition of Tesla to launch a 50% Robotaxi service of the American population by the end of the year, waiting for regulatory approval. A pilot program is underway in Austin, Texas, but the first tests have been tarnished by accidents, including a robotaxi that deviated towards traffic in the opposite direction. While Musk insists that Tesla should be valued as a robotics and AI company instead of a traditional car manufacturer, analysts question whether these initiatives can compensate for the company’s main problems in the automotive sector. The decrease in regulatory credit sales, which fell from $ 890 million to $ 439 million interannuals, is further eroding a source of income that was once lucrative.

Despite these challenges, some analysts remain moderately optimistic. Wedbush Securities maintains a “higher market” rating for Tesla, with an objective price at 12 months of 550 dollars, citing a possible recovery thanks to autonomous driving technology and a more affordable vehicle model. However, others, such as UBS analyst Joseph Spak, have cut their forecasts, predicting a 5 % drop in deliveries in 2025. Tesla’s stock capitalization, which currently is around 800 billion dollars, has lost almost 900 billion since its maximum in December 2024, which reflects the concern of investors.

While Tesla faces a perfect storm of economic, competitive and political winds, Musk’s ability to guide the company during this crisis will be crucial. The next quarters will test if Tesla manages to recover their position or if their domain in the electric vehicle market is really at risk. For now, the market reaction is eloquent: the volatility of Tesla’s actions and the decline of Musk’s fortune point out a crucial moment for the company and its enigmatic leader.