Tesla’s stock is tumbling
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Tesla's market cap fell below $1 trillion, but it still reflects investors' assumptions of enormous future growth.
Tesla's valuation gains today follow a bigger sell-off in yesterday's trading that was spurred by disappointing second-quarter results and comments from management suggesting that performance headwinds could continue in the near term. The company's share price has seen some big swings in 2025, and is down roughly 21% year to date with today's pop.
Elon Musk's electric-vehicle maker reported a 12% drop in quarterly revenue, and a steeper decline in net income. + Musk highlighted plans to release a lower-priced Model Y electric vehicle, spoke about his hopes for a new pay package and talked up plans to roll out Tesla robotaxis more widely.
Investors held onto hopes that the U.S. and Japan’s trade agreement could lead to a tariff breakthrough with other countries, and pushed the S&P 500 and Nasdaq Composite to fresh record highs.
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This suit has been brewing for some time. The state DMV started investigating Tesla for possible misleading advertising in 2021 and then sent an official inquiry to the automaker roughly a year later.
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