Tesla stock price fell big on Thursday. Tesla or TSLA shares crashed over seven per cent at $395. This comes even though Elon Musk-owned EV car sales surged in the past three months in a possible sign damage from a customer revolt over Elon Musk and boycotts are mostly behind it. The electric vehicle maker run by Musk reported Thursday that it delivered 480,126 cars to customers, a jump of 25 per cent over the 384,122 figure a year ago when many Europeans refused to buy his cars because of his embrace of far-right political candidates there. The second-quarter sales, the second straight gain in a row, also came in much higher than the 401,000 that Wall Street analysts had been expecting, according to a FactSet survey.
It's a big turnaround from just a few months ago when Tesla reported sales had fallen in 2025 for a second year in a row and it had to yield its crown as the world's largest EV maker to China's BYD.
Why is Tesla Stock Down?
Tesla stock fell sharply in midday trading Thursday, down more than 7 per cent, an odd development that Seth Goldstein of Morningstar attributed possibly to profit-taking by investors after a recent run-up in its shares.
For the second-quarter figures, the company didn't break out results by country, but an earlier report from European trade groups reported big sales increases in Europe in May, including a 300 per cent rise in Germany.
The Austin, Texas, company introduced cheaper Model Y and Model 3 models last year in hopes of boosting sales. In Europe, it also cut the cost of leasing and loans.
For future quarters, Tesla hopes to lure even more Europeans as countries approve use of its driver assistance feature, available in the U.S., called Full Self-Driving (Supervised). The Netherlands approved the system in April, followed by Estonia, Greece and Lithuania.
Tesla Sales
Sales fell last year amid protests at showrooms in Europe and the U.S., a Musk figure burned effigy in Milan and vandalism against Tesla drivers. Customers were angry about him publicly supporting far-right political candidates in elections. In the U.S., too, many of Tesla's traditional buyers stopped buying because of his work heading a Trump administration group cutting government spending.
In the U.S., Tesla was also hurt by the elimination of a big tax break for buying electric vehicles in the fall last year, which added as much as $7,500 to EV costs.
U.S. sales are still struggling, according to Cox Automotive, which estimates that Tesla sales fell 20 per cent in the second quarter in its home market from the year earlier period.
Amid Tesla struggles last year, Musk managed to shift the narrative about Tesla's future away from its car business to its robots, automated driving system and self-driving robotaxis.
Judging from the stock price, investors approve. Shares have fully recovered from a deep dive early last year, rocketing more than 40 per cent in the past 12 months.
