Tesla Stock Faces Headwinds as EV Tax Credits Phase Out, August 2025 Outlook Dims
Tesla shares tumbled 7% following CEO Elon Musk's warning of a challenging period ahead, exacerbated by the loss of U.S. electric vehicle tax credits. The TRUMP administration's policy change eliminates $7,500 rebates, removing a key price advantage for models like the $44,990 Model Y.
Compounding the pressure, Tesla exited the trillion-dollar market cap club after reporting disappointing earnings. Revenue fell 12% while profits declined 16%, with growing competition from European and Chinese automakers further clouding the August 2025 outlook.
Analysts now project TSLA could average $304 next month, below its current $316 level. The dual pressures of policy changes and intensifying competition create significant headwinds for the EV pioneer's stock performance.
