Tesla (TSLA) Stock: Autonomous Milestone Clashes With Brand Turbulence – Bulls Beware

Tesla just hit a major autonomous delivery breakthrough – but Wall Street's still hung up on those pesky brand issues.

The EV pioneer's stock faces headwinds as sentiment sours. While the tech keeps advancing (hello, robotaxis), investors remain skittish about Musk's latest Twitter feud or that controversial factory decision.

Here's the paradox: Tesla simultaneously leads the charge on AI-driven transportation while struggling with the most basic corporate PR. The stock chart tells the story – wild volatility masking undeniable technological progress.

Funny how the 'efficient market' can't price a company that's equal parts revolutionary and chaotic. Maybe the algos are as confused as the rest of us.

TLDR

• Tesla celebrates 15 years since its IPO, up nearly 300-fold since debuting at a split-adjusted $1.13.
• A $10,000 IPO investment in 2010 would now be worth close to $3 million.
• Tesla completed its first fully autonomous vehicle delivery in Austin, Texas, on June 27.
• CEO Elon Musk faces criticism for political affiliations and fallout from divisive remarks.
• Tesla sales slump across Europe and the U.S., while Musk touts future of robots and autonomy.

Tesla Inc. (NASDAQ:TSLA) stock closed at $323.63 on June 27, falling 1.48% on the day, despite the company marking the 15th anniversary of its IPO and announcing a historic first in driverless car delivery.

Tesla, Inc. (TSLA)

While the milestone reaffirms Tesla’s focus on autonomy, recent market performance and reputational damage from CEO Elon Musk’s political involvement have cast uncertainty over its near-term trajectory.

From Roadster to Robotaxi

Tesla’s initial public offering in 2010, priced at $17 per share ($1.13 post-splits), marked the beginning of a bold bet on electric vehicles and Elon Musk’s vision. Back then, Tesla had generated just $150 million in revenue from its niche Roadster model. Today, the company boasts a market cap over $1 trillion and is the eighth most valuable publicly traded firm in the U.S.

The company’s growth accelerated with the release of the Model S, followed by the highly successful Model Y and Model 3. Despite this, Tesla stock has fallen about 20% year-to-date, trailing the S&P 500 and peers like Apple, as new challenges emerge.

Driverless Delivery and the Autonomy Push

On June 27, Tesla claimed to have completed its first fully autonomous delivery, transporting a Model Y SUV from its Gigafactory in Austin, Texas, to a customer without any human supervision. The delivery traversed public highways and urban streets without a driver or remote operator, according to Elon Musk’s post on X.

The company did not clarify which software version enabled the drive or whether it WOULD be commercially available soon. While the achievement stirred excitement, Alphabet’s Waymo and Baidu’s Apollo Go already offer robotaxi services, indicating Tesla is still catching up in real-world autonomous deployment.

Political Controversy and Brand Decline

Musk’s political alignment has affected Tesla’s brand. His endorsement of Donald Trump, financial contributions to Republican causes, and support for Germany’s far-right AfD party have led to public backlash. Polling data and reports from Brand Finance show Tesla’s brand value dropped 26% in 2024, marking a second consecutive year of decline.

Musk’s short-lived tenure with President Trump’s Department of Government Efficiency earlier this year also coincided with Tesla’s stock tumbling 14% on June 5, after TRUMP threatened to pull federal contracts from Musk’s companies. While Musk has temporarily pulled back from political commentary, the reputational damage lingers.

Sluggish Sales and Competitive Pressures

Tesla’s EV sales have declined year-over-year, particularly in Europe, where May marked the fifth consecutive monthly drop. The Cybertruck, once a symbol of Tesla’s innovation, has failed to gain traction amid recalls. In contrast, Chinese EV competitors like BYD and Nio continue to gain global market share.

Musk remains confident that Tesla’s Optimus humanoid robots and autonomy software will redefine its future value. He claims these innovations could eventually lift the company’s market cap to $25 trillion. However, with declining deliveries and muted consumer sentiment, such projections appear distant.

Looking Ahead

Tesla will report its second-quarter production and delivery figures on July 2, a critical update for investors eager for signs of a turnaround. While the company still commands intense investor interest and loyalty, its next phase depends on product innovation and repairing its public image.