Tesla's Stock Fluctuations Amid Second-Quarter Deliveries, Market Reactions, and Musk's Political Moves
Tesla's stock surged 4.8% in premarket trading and rose 1% in overnight trading following the announcement of second-quarter deliveries of 384,122 EVs, slightly below expectations but close to consensus estimates. Despite concerns of sales weakness in Europe and China, the company's performance in China improved with rebounding sales. Investors are anticipating the release of Tesla's next model to boost sales growth. CEO Elon Musk's reduced involvement in politics is seen as a positive for the company. However, Musk's recent announcement of forming the 'America Party' and his opposition to a bill signed by President Donald Trump have caused some investor concerns, leading to a significant drop in Tesla shares in premarket and regular trading sessions. The political move has also affected Tesla's sales, with Musk turning off some core EV buyers. The board's lack of response to Musk's actions indicates a lack of control over his rogue behavior, causing uncertainty among shareholders. Analysts downgrade Tesla stock, citing potential headwinds from political distractions and regulatory credit risks. The upcoming release of Tesla's second-quarter financial results on July 23 adds to the uncertainty surrounding the stock.