Bad news will sink TESLA in H2 2025 ?

JC888
06-19

In my post dated 17 Jun 2025, I have shared about $Tesla Motors(TSLA)$ much hyped autonomous driving that will be officially unveiled come 22 Jun 2025. click here ! for details, Repost to share ok.

Since then, the war between Israel and Iran continued to persist into its 6th day (including 18 June 2025).

Now it seems that there is a slim chance that Trump may get US involved in this dispute as well. (see below)

I think there is no need to state the obvious on what is going to happen to US stock market if US decided to join in the fray, right ?

While Trump mulled over his options with his Defense secretary Pete Hegseth, Tesla stock has already taken another beating on the run up to its Robotaxi unveiling.

This cannot be a good thing.

Catalysts.

What are the cause/s this time ? See below.

Stalling Production.

Tesla is pausing production of Cybertruck and Model Y for the 2nd time in 2 months.

In late May 2025, Tesla extended a long weekend into a week-long production shutdown at Gigafactory Texas.

This time round, production halt will be for one week, commencing on 30 Jun 2025.

China Falling Sales.

Tesla’s sales performance in China continues to fall in 2025.

Since the start of the year, Tesla vehicle registrations (that serves as a crude indicator of deliveries) have fallen by -7% YTD.

Over the first eleven weeks of Q2 2025, registrations are about -3% lower than the seasonally weak Q1 2025, and nearly -17% below the same period last year.

According to data released by China Passenger Car Association (CPCA) on Mon, 16 Jun 2025, Tesla’s domestic sales for the first 5 months of 2025 have fallen nearly -8% YoY.

The decline was especially severe in May 2025, when Tesla sold only 38,588 vehicles in China—a sharp -30% decrease from the YoY’s 55,215 vehicles sold in May 2024. (see above)

In contrast, overall electric vehicle sales in China saw a +28% increase during the same period, highlighting Tesla’s relative underperformance in the Chinese market.

Unsold Inventory.

As if the above is not bad enough, there is also another scathing news about Tesla’s unsold inventory products left on the shelves. (see below)

On 17 Jun 2025, Electrek reported that TSLA is sitting on so much inventory in the US that it has to take over parking lots outside of its exciting delivery centers to act as “overflow lots.”

Over the last few weeks, there have been increased reports of Tesla vehicles spotted in parking lots not directly linked to Tesla retail, delivery, or service locations. (see below)

Inventory.

The latest data report points to Tesla increased inventory over the last week, with a surge of Model 3 listings: (see below)

Tesla’s overall inventory is higher than it was at the same time last quarter.

Cybertruck inventory has decreased slightly as Tesla has reduced production, but the automaker is still holding over 3,000 unsold Cybertrucks.

Readiness.

Perhaps the most damning piece of news that continues to plaque Tesla in this week is none other than its autonomous driving capabilities. (see below)

According to May 2025 Electric Vehicle Intelligence Report, public skepticism remains high:

  • 60% of surveyed consumers consider Tesla’s FSD unsafe.

  • 77% are unwilling to use it.

  • 48% believe it should be illegal,

Real-world incidents highlight TSLA’s autonomous driving - readiness.

Recent videos show Tesla vehicles making critical errors, eg. driving in the wrong lane for extended periods before the drivers intervened.

Multiple users have reported similar problems, especially with the Cybertruck model.

Knowledge Is King !

Investors need to understand all the details covered because Tesla will be reporting its Q2 2025 earnings tentatively on Tue, 22 Jul 2025.

The report will be shaped by a convergence of these critical factors that directly impact the company's financial health and future prospects.

On 22 Apr 2025, despite handing in a weaker-than-expected Q1 2025 earnings, Tesla stock price rose from a “low” $237.97 per share to its current price $316.28 (as of 17 Jun 2025).

This was perhaps due to CEO’s closed’ association with Trump and the excitement generated just by Musk’s confirmation that Robotaxi will be unveil in Q2 2025.

The day of reckoning has finally arrived, come rain or shine.

Regardless of Tesla Robotaxi launch’s outcome, will US market continue to support this ‘hardy’ stock if its Q2 2025 earnings continue to fall short of expectations?

Remember to check out my other posts. (See below). Help to Repost ok, Thanks.

Must Read: Click on below titles to access. Repost to share, Like as encouragement ok. Thanks.

  • Do you think Tesla will report an even weaker Q2 2025 quarterly results in July 2025?

  • Do you think Tesla will be able to “recover” the lost grounds after Robotaxi unveiling ?

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