Tesla Shares Tumble as Musk Warns of Rough Quarters Ahead
Hey everyone, let’s talk about some major developments around Tesla and Elon Musk — and it's not great news. Tesla’s stock has taken a serious hit, and it’s already shaking up the market in a big way. In fact, Elon Musk just lost a staggering $12 billion from his net worth in a single day.
Here’s what’s going on. On Thursday morning, Tesla shares dropped more than 8%, falling to just above $303. That’s not just a casual dip — it’s a major blow, especially considering it came right after Tesla released its second-quarter earnings report. The numbers weren’t good. This was Tesla’s biggest drop in quarterly revenue in over ten years. One key factor? A loss of nearly $600 million in revenue from automotive regulatory credits. That’s a massive hit.
Musk didn’t sugarcoat anything on the investor call either. He admitted Tesla is probably looking at “a few rough quarters” ahead, particularly as federal EV tax credits are set to expire soon. These credits, including the $7,500 incentive for buying or leasing electric vehicles, have been a big driver of demand — and now they’re on the chopping block.
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And this all ties back to President Trump’s new policy bill — “One Big Beautiful Bill” — which eliminates those EV tax credits starting after September 30. Musk, who’s previously spoken out against all credits, has reversed his tone recently, calling the cuts “incredibly destructive” for clean energy progress in the U.S.
With this stock plunge, Musk’s 12% stake in Tesla dropped from $136.3 billion to about $124.1 billion — that’s a $12.2 billion loss overnight. Despite all this, Tesla’s still holding a huge market cap and Musk remains the world’s richest person, with a net worth estimated around $414.9 billion.
Some analysts, like Alex Potter from Piper Sandler, are saying we might see a “modest reduction” in credit revenue going forward, but nothing drastic. Others, like Dan Ives from Wedbush, call this loss of EV tax credits a serious “headwind,” not just for Tesla but for the whole industry.
To make matters more complicated, there’s been growing criticism around Musk’s involvement in politics — something investors are starting to lose patience with. Recently, some analysts even downgraded Tesla stock because of those distractions.
Still, Musk is pushing forward with ambitious goals. He said Tesla aims to have fully autonomous ride-hailing available in half the U.S. by the end of 2025 — pending regulatory approval, of course. It’s bold, but that's Musk for you.
So while Tesla’s future isn’t exactly in crisis, it’s clear the road ahead isn’t smooth. Between revenue setbacks, policy shifts, and investor jitters, the company’s entering a pretty turbulent phase. We’ll have to wait and see how it plays out — but one thing's for sure: the spotlight on Tesla isn’t going anywhere.
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