Earnings Data Reveals Concerns as Stock Hits One-Year Low
Tesla released its second-quarter earnings report on July 23, disclosing that 22,000 new vehicles have remained unsold year-to-date, alongside more than 200 crashes linked to its driver-assistance technology. Following the report, Tesla’s stock closed at $320, a drop of over 10% from the previous day and its lowest level since August 2025. This marks the first significant pullback since Tesla’s 2010 initial public offering, when shares were priced at $17 (split-adjusted to $1.13).
Despite sales pressures, Tesla maintained its leading position in the US electric vehicle market, holding just over 50% of the market share in Q2. However, this represents a decline from its peak of 80% in 2019, as traditional automakers and startups intensify competition. General Motors and Ford, while shifting focus toward plug-in hybrid models in 2025, continue to advance affordable electric vehicles. GM plans to launch the 2027 Bolt, touted as “America’s most affordable EV,” while Ford is developing a midsized all-electric pickup truck.
Robotaxi Expansion Marred by Incidents, Safety Concerns Rise
On the same day as its earnings report, Tesla announced the expansion of its Robotaxi autonomous ride-hailing service to Tampa and Orlando, Florida, joining the previously launched Miami service. However, the day after the launch, local media reported a Tesla Robotaxi driving the wrong way on a one-way street in Tampa. Footage from a driver’s dashcam captured the vehicle incorrectly navigating the intersection of North Armenia Avenue and West Cypress Street, raising questions about the safety of Tesla’s autonomous technology.
During the earnings call, CEO Elon Musk stated that the Robotaxi service was scaling rapidly, with miles driven growing by more than 10% weekly. The service currently operates in Florida, Texas, and the Bay Area. Musk emphasized, “Our goals for Robotaxi are ambitious, but we must proceed cautiously to avoid any accidents or injuries.” His remarks did little to reassure investors, who reacted with skepticism, driving the stock lower.