Tesla shares fell 26% in July amid declining profitability and slower autonomous vehicle progress, marking its steepest monthly decline in over three years.
Tesla (NASDAQ: TSLA) stock declined 26% in July, its largest monthly drop since December 2022, when it plunged 40%. The sell-off reflects investor concerns over weakening profitability despite rising revenue.
Over the past three years, Tesla’s trailing 12-month net income has fallen 64%, even as revenue increased by 8%. The company’s pivot toward autonomous driving and robotics has yet to offset declining margins, raising questions about its valuation.
Elon Musk has emphasized Tesla’s AI and robotics potential, but progress in its robotaxi rollout remains slow. Some investors may also be diverting capital to Musk’s other ventures, including SpaceX.