Tesla had its worst day of the year, despite deliveries exceeding even the most optimistic forecasts
Analysts believe this was a "news-driven sell-off"
The last trading day of the week in New York was Tesla's worst since the summer of 2025 / Photo: Tobias Arhelger / Shutterstock
On July 2, during the final trading session of a shortened trading week in New York, Tesla shares fell 7.5%. For the company, this was its worst day on the stock market since July 2025.
The sell-off began after the release of exceptionally strong data on the company’s deliveries: electric vehicle shipments in the second quarter exceeded the consensus forecast compiled by Tesla itself by 18%. But that wasn’t enough for the market: investors had already priced in a strong report, and some of the quarterly demand may have been driven by circumstances that won’t necessarily repeat in the future.
What Analysts Are Saying
The plunge in the stock price of the world’s most valuable automaker can be explained by the classic stock market adage “buy on rumors, sell on news,” according to MarketWatch, citing Gene Munster, managing partner at Deepwater Asset Management. Tesla’s stock had already risen sharply in anticipation of a positive report, and its release prompted profit-taking. Furthermore, it is unclear to what extent high gasoline prices have boosted electric car sales, the expert added.
William Blair analyst Jed Dorsheimer pointed out another one-time factor: the second quarter may be the last in which deliveries were supported by purchases before production of the flagship Model S and Model X was discontinued. Tesla stopped accepting orders for these models on April 1 and delivered the limited-edition versions to customers in May, MarketWatch notes.
Gary Black of The Future Fund also attributed the plunge in Tesla’s stock price to investors taking profits following the release of the expected positive news. He dismissed the conspiracy theory that the drop might have been linked to Elon Musk selling shares. According to Black, the company’s lawyers would not have approved insider sales prior to the publication of the quarterly report on July 22. “I don’t think Elon is selling,” the fund manager wrote on X.
How many cars has Tesla sold?
Tesla easily exceeded market expectations for deliveries in the second quarter. The company reported that it delivered 480,126 electric vehicles to customers from April through June. The consensus forecast provided by the automaker was 406,000 vehicles. Deutsche Bank had projected 416,000, Morgan Stanley had projected 413,000, and independent analyst Troy Teslike had estimated quarterly deliveries at 466,000 electric vehicles. Andrew Percoro of Morgan Stanley told MarketWatch that any result above 425,000 vehicles for the quarter would clearly exceed expectations.
What Wall Street Thinks About Stocks
According to FactSet, Wall Street analysts have maintained a neutral stance on Tesla shares over the past three months, with a consensus “Hold” rating. Twenty out of 50 analysts recommend buying the company’s stock, while seven recommend selling. In its third-quarter strategy, Freedom Broker maintained Tesla’s position as the top investment idea in the auto sector and raised its price target from $440 to $450 per share, which is 14% above the closing price on July 2.
This article was AI-translated and verified by a human editor
