Tesla Rebounds from Monday Low
Tesla stock managed a partial recovery on Tuesday after falling off a cliff on Monday as a result of new tariff concerns.
Quick overview
- Tesla's stock dropped 6.8% on Monday due to tariff fears and ongoing tensions between Musk and Trump, but saw a partial rebound on Tuesday.
- Despite low sales and a PR crisis, Tesla's stock remains above its average value over the past year, though it has not yet reached its December 2024 peak of $479 per share.
- The company recently launched a driverless taxi service in Austin, Texas, which has faced several operational issues but continues to operate with safety measures in place.
- Investors are concerned about the performance of the taxi service and the lack of new product releases, leading to a decline in stock value, but there may be opportunities to buy at lower prices.
On Monday, Tesla’s (TSLA) stock dropped 6.8% as tariff fears increase and Musk and Trump continue to fight, but a Tuesday rebound has helped the company recover partially.
It was not likely that Tesla’s stock would fall so far on Monday and not make some kind of comeback the following day. The company may be experiencing low sales in many parts of the world and suffering from a PR nightmare, but their stock is still above the average value of their last 12 months.
By that metric, Tesla stock is doing well, but they have yet to reclaim their December 2024 peak of $479 per share. That high point followed weeks of bullish behavior in the stock market after Trump won the presidential election. Since Trump took office, however, Tesla stock has been in decline.
The political climate has been so polarizing for Tesla and their CEO Elon Musk because he worked as part of the Trump administration for months. This hurt Tesla sales around the world, and the company was further hurt by the fact that they had not released a new product in a while.
Can Tesla’s Automatic Taxi Service Turn Things Around?
Tesla recently launched a driverless taxi service in Austin, Texas, with a plan to roll out the service to more markets if this initial venture was successful. The service started on June 22nd and has since seen a number of issues. There have been reports of the driverless taxis stopping suddenly, driving faster than the posted speed limit, letting passengers out in intersections, and other problems.
The company expected there to be some issues with the service initially as they started the endeavor. That is why the taxis all have a Tesla employee in the passenger’s seat up front to stop the car if there is a serious problem. For now, the service continues to deliver many Austin residents, and Tesla continues to collect data to improve their service.
Tesla’s Stock Problem
Even though the TSLA stock price climbed on Tuesday, it was not enough to make up for the sharp decline from Monday. Investors are worried about the spotty performance of the taxi service, poor sales of Tesla vehicles throughout the world, and the nebulous release of any new Tesla products that would help bolster stock values.
Tesla is struggling to keep investors happy at the moment, as their stock value has been in almost continuous decline for the past two weeks. They really need something to give their stock a shot in the arm, but this could be an opportunity for investors to buy the dip. Tesla recently enjoyed a peak price of $348 per share, and they hit $362 back in May. There is potential for the stock to climb again soon, and investors may want to take advantage of the low price right now.
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