Tesla Stock Falls to September Lows
tesla stock continues to fall, resulting in its worst single day performance since July and making it part of the wider tech stock decline.
Quick overview
- Tesla stock fell over 2% on Friday, continuing a decline driven by fears surrounding the AI market.
- The company experienced its worst daily loss since July, dropping 6.6% on Thursday, despite CEO Elon Musk's $1 trillion pay package approval.
- Tesla is moving forward with AI initiatives, including a production line for Optimus robots and expanding its robotaxi service.
- Currently, Tesla stock is trading at $383 per share, reflecting a significant decline since the start of November.
After a sharp decline on Thursday, Tesla (TSLA) stock fell more than 2% Friday as tech stocks suffered across the board, mostly due to AI market fears.
Tesla stock is being pulled down by a technology stock selloff, prompted by concerns that that AI market will lose momentum in the near future and that much of the investment made into AI will lead to massive debt for tech companies.
On Thursday, Tesla had its worst daily loss since July, with a drop of 6.6% by the end of the day. This comes just after CEO Elon Musk had his $1 trillion pay package approved, and yet analysts expected the company’s stock to perform well after that issue was settled.
Tesla Moves Forward with AI Despite Market Concerns
It looks like Musk and Tesla are not letting fears over the collapse of the AI market worry them. The company announced that they would be building a production line at their Freemont, California facility. There, they would be able to produce a million Optimus units, which are in-development AI-powered robots that are designed to serve a variety of purposes. The Optimus robot is already in pilot production, so Tesla may be close to releasing what Musk has called a product that will enable universal income and replace many jobs.
Tesla is also expanding its robotaxi service, which utilizes AI technology to provide driverless transport in several major cities in the United States already. The soft launch of this service requires that there be a safety driver present to handle any emergencies or deal with mistakes the AI driver may make as the company irons out the wrinkles in the tech.
Tesla stock is now down to $383 per share in premarket trading for Friday at the time of this writing. The stock has mostly been in decline since the start of November, and it has performed worse on average than the leading tech stocks in that period. Even though the tech side of the stock market is in decline this week, Tesla stock has suffered tremendously all through the month.
What is significant about the latest stock price drop for Tesla is that the stock level is now just below where it started 2025 off, and that is not a good look for the company. With Musk back on board as full-time CEO after stepping away from government work with the Department of Government Efficiency, and with his new pay package secured, this may be an opportunity for the company to move forward and make good on all its plans. We might be seeing the first stumbling steps of the company attempting to right itself, and there is a strong possibility that Tesla will finish 2025 strong and perform very well in 2026 despite how the stock is performing now.
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