On July 13, Tesla declined 3.07% in regular trading, trading at $395.47/share, with turnover of $2.229 billion. The stock pulled back from its earlier rebound above $400, as multiple fundamental headwinds converged ahead of its quarterly earnings report scheduled for July 22.
On the news front, market data highlighted that Tesla's per-vehicle net profit has plunged approximately 40% from its peak. Full-year GAAP net income for 2025 came in at just $3.8 billion, down 46% from $7.1 billion in the prior year, with per-unit profit falling from roughly $3,969 to $2,323. Product mix imbalance following the discontinuation of high-margin Model S and Model X, combined with heavy R&D spending on Cybercab and FSD, continues to erode margins. Meanwhile, well-known short seller Michael Burry reportedly initiated large short positions across the AI value chain, fueling broader concerns about an AI capital cycle inflection that indirectly pressures Tesla's AI and robotics valuation narrative.
Separately, Jefferies raised its Tesla price target from $375 to $400 but maintained a Hold rating, reflecting institutional caution toward current valuation levels where market capitalization remains significantly disconnected from underlying fundamentals.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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