Tesla Stock Slides as Political Tensions and Global Sales Woes Mount

Tesla Inc's shares declined on Thursday, contributing to a mixed day for U.S. stock markets. The electric vehicle manufacturer's stock faced pressures due to rising political tensions and challenges in international sales.

Elon Musk, the CEO of Tesla, has intensified his public dispute with former President Donald Trump, openly criticizing a proposed bill that aims to abolish the $7,500 electric vehicle tax credit. Musk argues that the legislation, known as the "Big, Beautiful Bill," could pose significant threats to the U.S. economy and Tesla's market growth domestically.

Beyond political controversies, Tesla is experiencing persistent difficulties with global sales. In May, deliveries of its vehicles manufactured in China fell 15% compared to the previous year, marking the seventh consecutive month of decline. European markets also showed signs of weakness, with noticeable drops in crucial areas like the U.K., Germany, and Italy.

Amidst these challenges, Tesla is preparing for the unveiling of its robotaxi in Austin on June 12. Despite initial advancements in testing self-driving vehicles, the company remains under federal scrutiny concerning its Full Self-Driving system. These factors collectively have left investors cautious, as external pressures continue to affect the company's stock performance.

During Thursday's trading session, Tesla's stock fell by 3.8%, closing at $319.50. Over the past week, the company's shares have seen a 10.6% decrease, reflecting investor concerns over political factors and growing competitive challenges within the electric vehicle market.