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Tesla experiences stock decline after Musk alters growth forecasts

Elon Musk's announcement of potential struggles has led to a 9% drop in Tesla's stock.

July 24, 2025 at 01:23 PM

Tesla sells off after Elon Musk scraps his 2025 sales growth target and warns ‘we could have a few rough quarters’

Investors react negatively after Elon Musk's earnings call raises concerns about Tesla's future.

Tesla's stock drops as Musk ditches sales targets and warns of challenges ahead

Tesla's stock took a significant hit after CEO Elon Musk announced the company would not meet its full-year sales targets. During a recent earnings call, Musk warned of potential rough quarters ahead, causing shares to drop by 9%. This decline follows the launch of Tesla's robotaxi fleet in Austin, where only 7,000 driverless miles have been logged since the launch. Investors expressed disappointment at the lack of clarity regarding the scaling of the robotaxi service and other business details, leading to a downtrend in shares.

Key Takeaways

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Tesla shares fell 9% following Musk's earnings call.

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Musk scrapped full-year sales targets amid concerns.

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Only 7,000 driverless miles have been recorded by the new robotaxi fleet.

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Vehicle sales dropped 13% in the first half of the year.

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The low-cost model's production has been delayed until Q4.

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Investors expected clearer operational details regarding the robotaxi service.

"Investors were searching for something and not hearing it."

Gene Munster expresses the disappointment of investors after the earnings call.

"We probably could have a few rough quarters."

Musk acknowledges the possibility of continuing struggles for Tesla.

"In the meanwhile, we’ll launch a service with a person in the driver’s seat just to expedite."

Tesla's AI director discusses short-term plans while awaiting regulatory approval.

"It’s so powerful we’ll have to nerf it to some degree for markets outside the U.S."

Musk highlights the capabilities of Tesla's upcoming AI chip.

Musk's announcement and the subsequent sell-off underscore the financial precariousness Tesla faces. With a 13% drop in vehicle sales and a delayed low-cost model, he signals uncertainty that could deter investor confidence. The lack of a clear plan for the robotaxi service further complicates the situation, revealing potential vulnerabilities in Tesla's ambitious growth strategy. As the company grapples with established competitors and market expectations, the need for transparency and a well-structured roadmap is more critical than ever.

Highlights

Tesla's stock drop reflects investor uncertainty about its future.
Musk's promises remain vague as investors seek clarity.
The road ahead for Tesla seems bumpier than expected.
Investors are hungry for transparency in Musk's plans.

Investor concerns over Tesla's performance and future

Musk's dismissal of sales targets and ambiguous plans for the robotaxi service raises alarms. Investors fear this could indicate deeper issues within the company's growth strategy, increasing uncertainties surrounding performance.

As Musk navigates potential headwinds, the pressure for Tesla to deliver meaningful progress intensifies.

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tesla elon musk robotaxi investors automotive business technology automotive

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