Tesla met lowered expectations. Sales fell 13.5% year over year, and estimates for the second quarter started out closer to half a million car sales at the start of 2025. Coming into Wednesday trading, Tesla stock had fallen for six consecutive days, losing 14% over the span.

Investors were increasingly anticipating a bad number, given several recent reports of sales weakness in Europe and China. To add to the anxiety, Tesla Chief Executive Elon Musk renewed his feud with President Donald Trump this week by criticizing the budget bill that barely passed the Senate.

As recently as April, Tesla said it would begin production of its mysterious new "affordable" EVs in the first half of 2025.

Tesla shares rose nearly 5% on July 2, after a sharp 5.3% drop the day before pushed the stock down to $300.71.Year-to-date, Tesla stock is down 22%, the weakest performer among the Magnificent Seven stocks.

Q2 delivery numbers marked a sharp year-over-year decline but still managed to exceed the more pessimistic forecasts. The