Tesla shares endured another difficult week, falling around 5% before rebounding as the electric vehicle maker grappled with weakening demand and mounting operational challenges. The decline extends the stock’s year-to-date losses to over 20%, marking a stark contrast to the broader market’s record-breaking performance.
The catalyst for this week’s weakness was Tesla’s disappointing second quarter (Q2) delivery figures, which showed a 14% year-on-year (YoY) decline. More concerning for investors was the sharp 45% plunge in European sales between January and May, highlighting the company’s struggle to maintain momentum in a key international market.
Adding to investor concerns, CEO Elon Musk’s highly publicised political disputes have created additional uncertainty around the company’s leadership direction. Some analysts suggest this could further undermine confidence in Tesla’s already stretched valuation, particularly given the stock’s premium rating compared to traditional automotive peers.