Tesla Stock Tanks: Here’s Why the Electric Giant Stalled Today

Tesla shares hit the skids as investors grapple with mounting pressures.

Production Woes Bite Hard

Supply chain bottlenecks continue to throttle output targets. Factory shutdowns ripple through quarterly projections.

Market Jitters Spread

Broader tech selloff drags down EV sector leaders. Rising interest rates punish growth stocks across the board.

Competition Heats Up

Legacy automakers flood the market with electric alternatives. Price wars squeeze margins from all directions.

Another quarter where Tesla's valuation proves more volatile than a crypto meme coin during a regulatory crackdown.

Image source: Tesla.

Tesla keeps losing ground

New EV sales data show Tesla continues to lose its lead versus EV competition. August sales data from the European Automobile Manufacturers' Association (ACEA) showed Tesla sales dropped 37% year over year in the European Union.

At the same time, August was a banner month for Chinese competitor. Its August sales tripled year over year. BYD even outsold Tesla in Europe for the second consecutive month. Year to date, BYD's European sales have soared by 280%, while Tesla's have declined by 33% versus last year.

Tesla CEO Elon Musk has tried to focus investor attention on the company's autonomous driving and robotics technologies. But after a 25% increase in Tesla stock over the last month, the continued decline in its EV sales may have some investors taking profits.

So is Tesla a buy?

Owning Tesla shares means expecting volatility. Musk has touted the expansion of Tesla's robotaxi fleet, but that hasn't yet come to fruition. Any future success of that product could drive shares higher. The same can be said of Tesla's robotics aspirations.

But the humanoid robot and a large fleet of self-driving robotaxis aren't yet a reality. Today's stock action shows some investors aren't willing to hold shares with the hope of long-term success of those products.