Prior to the expected robotaxi service launch, Tesla vehicle insurance registrations in China plummeted sequentially last week and are now down about 4% compared to the first quarter, when China vehicle sales were arguably the only bright spot for Tesla's EV business. Tesla stock advanced in stock market action Tuesday.
Tesla insurance registrations in China totaled around 8,640 for the week of June 2-June 8, down 34% from 13,000 the previous week, according to data compiled by independent China auto industry trackers on Wednesday. Many major electric vehicle makers in China saw weak insurance registration performance during the week. Slow registrations data tends to be typical at the beginning of the month. There was also a Chinese holiday that ran between May 31 and June 2.
However, 10 weeks into Q2, Tesla registrations in China are roughly 4% below the seasonally weak Q1 and down more than 22% vs. a year earlier. Since the beginning of 2025, Tesla vehicle registrations in China are down nearly 9%. Registrations act as a rough gauge for deliveries.
Meanwhile, through the first five months of 2025, Tesla vehicle sales in China's domestic market have fallen nearly 8% compared with the same period in 2024, according to data released Monday by the China Passenger Car Association (CPCA). In May, Tesla sold 38,588 vehicles in China, a 30% decrease from the 55,215 units sold in the same month last year.
Vehicles Sales Slow But All Eyes On The Robotaxi
Tesla sales have struggled throughout Europe and the U.S. in 2025, as Chief Executive Elon Musk's involvement with President Donald Trump has brought "brand damage" to the company. Meanwhile, Tesla also rolled out a refreshed Model Y in Q1.
Wells Fargo analysts on Tuesday wrote that, based on May data, Tesla Q2 deliveries are on track for "another poor quarter."
However, this may not matter for Tesla stock. Musk has repeatedly stated that in the long-term, value is not tied to the EV business. Investors are also expecting Tesla will launch its robotaxi service in Austin, Texas, on Thursday, based on a report from Bloomberg. As of Tuesday, Tesla had not announced an official date.
Tesla, Elon Musk Hint At Imminent Robotaxi Service Launch
Tesla is a "known" autonomous vehicle, or AV, operator in Austin as of June 10, according to Austin's Transportation And Public Works website. The EV giant is listed as being in the "testing" phase of autonomous driving operation in the city. For comparison, Waymo is officially listed in the "deployment" phase.
Musk And Trump Hit Tesla Stock
Tesla stock advanced 5.7% to 326.09 during Tuesday's stock market action after climbing 4.6% on Monday. That left shares just above their 200-day line as Trump struck a diplomatic tone when discussing Musk with members of the media.
Tesla Bounces After Musk-Trump Blowup, But Maybe There's More To Thursday's Decline
"We had a good relationship and I just wish him well, very well actually," Trump said Tuesday.
The president added that he "may move" his Tesla vehicle "around a little bit," apparently signaling he will not be selling it. "I have a lot of locations," he added.
Tesla stock dived 14.7% to 295.58 last week, plunging Thursday to round-trip an aggressive entry and undercut key moving averages — including its 21-day exponential moving average, the 200-day moving average and 50-day line — as Musk and Trump traded insults and threats online.
Shares rose Friday but hit resistance around the 200-day line.
TSLA stock's plunge last week tracked news of the Musk-Trump feud, with Friday's bounce possibly reflecting hopes for lowered tensions. Musk deleted tweets Friday night suggesting Trump appeared in the unreleased FBI files on financier and convicted sex offender Jeffrey Epstein.
"While the situation remains fluid, we believe the disagreement will not help Tesla demand but could potentially (temporarily) alienate multiple sides of the political spectrum," Morgan Stanley analyst Adam Jonas wrote on Friday.
Bloomberg reported Monday that retail Tesla investors put more than $650 million into Direxion Daily TSLA Bull 2x shares last week. The fund delivers twice TSLA's daily return.
This was the largest weekly inflow since the fund made its debut in 2022, according to Bloomberg data.
The Robotaxi Release And Tesla Stock
TSLA's decline in last week's stock market could also be read as a warning that the upcoming Tesla robotaxi launch is a risk event that could trigger huge moves.
CFRA analyst Garrett Nelson wrote last Thursday that the "stock's sell-off reflects a number of other factors: an unjustified run-up following its Q1 earnings release, ongoing market share losses in China and Europe, and a realization that next week's Robotaxi launch in Austin could disappoint."
"Similar to other major Tesla events in the past, shares have appreciated sharply leading up to the event, raising the probability of a 'sell the news' reaction. We remain at Hold, expecting more volatility in the near term. Buckle up!" Nelson added.
Musk, recently speaking with CNBC, said there will be about 10 robotaxi Model Ys in the first week and that there could be 1,000 units in a "few months." At the time, Musk did not give a specific date for the rollout, but said it would come before end of June.
Musk also confirmed the autonomous trips will have human supervision.
Cathie Wood's ARK Invest has also repeatedly trimmed Tesla holdings in recent days. Wood sold Tesla last Monday, after making similar moves three times the prior week, selling nearly 50,000 shares overall.
Market In A Power Trend
TSLA stock is now down about 19% for the year, despite surging on robotaxi bets following the April 22 Q1 conference call. The stock is also down 33% from its all-time high of 488.54.
Tesla stock has a 21-day average true range of 5.49%. The ATR metric, available on IBD's MarketSurge charting tool, gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily stock market action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
The S&P 500 and Nasdaq are now in a power trend. Investors can buy stocks with ATRs of up to 8%, though they should be wary of being too concentrated in high-octane names. Tesla stock needs to recover the 200-day and 21-day lines, according to MarketSurge charts.
Tesla stock has a 68 Composite Rating out of a best-possible 99. The stock also has a 92 Relative Strength Rating and a 59 EPS Rating.
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