Tesla stock slipped Wednesday after more weak sales data and as apublic disagreement between CEO Elon Musk and President Donald Trump escalated.
The electric-vehicle maker’s stock fell 3.6% to $332.05, while the S&P 500 finished flat and the Dow Jones Industrial Average dropped 0.2%. The shares dropped another 2.5% in overnight trading.
The dip came with more disappointing sales data in China and Germany. In the latter, Tesla sold 1,210 cars in May, down 36% year over year. That brought year-to-date sales to just 7,030, down 58% year over year.
In China, May shipments from Tesla’s Shanghai plant totaled nearly 62,000 cars, representing a 15% year-over-year decline. Tesla’s retail sales in the first nine weeks of the second quarter were down about 17% year over year. Monthly shipments, however, were up from 58,000 in May. Weekly sales rose almost 20% year over year. Investors might take some comfort in those gains.
Tesla shares rose 0.5% on Tuesday. The stock eked out a gain but slid roughly $10 in the afternoon after Musk criticized President Donald Trump’s tax bill.
“This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination,” tweeted Musk. “Shame on those who voted for it: you know you did wrong. You know it.”
He didn’t stop there. In a Wednesday X post, Musk called for firing politicians who pass the bill.
The tweets might have implications for the legislation, emboldening deficit hawks. Tesla investors likely care more if Musk’s social media posts have implications for Tesla’s stock price.
Future Fund cofounder Gary Black said Wednesday that “Elon’s declaration of war against Trump’s big beautiful bill” might jeopardize a federal standard for self-driving cars. That was a key benefit for Tesla from the Musk-Trump relationship, added Black.
Predicting the path of any fallout feels almost impossible. They will have to wait to see how things turn out. The president and Musk have disagreed before about tariffs.
Coming into Wednesday trading, Tesla shares are down about 15% year to date, and up 95% over the past 12 months. Shares are also up 45% since the company’s first-quarter earnings conference call on April 22.
On that call, Musk said he would spend more time at his companies and less time in Washington, D.C., and that Tesla was on track for its Austin, Texas, robotaxi service deployment in June.
Those two issues have driven shares higher for weeks. It’s possible Tuesday’s tweet makes it less likely Musk will be heading back to Washington any time soon. Investors wouldn’t mind that.
With Musk back at his companies, investors are anxious to see driverless Tesla vehicles with paying passengers in Austin.
Comments