Tesla's $26.65B Volume Slide to 4th as Trump Policies EV Credit Losses Weigh

Tesla (TSLA) fell 3.38% on July 31, with a trading volume of $26.65 billion, ranking fourth in daily trading activity. The decline followed renewed concerns over regulatory and market dynamics impacting the EV maker. President Donald Trump’s recent remarks denying plans to “destroy” Elon Musk’s companies offered limited reassurance, as investors remain focused on the broader implications of Trump’s tax bill and evolving subsidy policies. The U.S. president’s “One Big Beautiful Bill” has already eliminated key federal EV tax credits and weakened fuel-economy standards, directly affecting Tesla’s revenue streams from regulatory credit sales. These credits, which accounted for $439 million in Q2 revenue, face further erosion as the new legislation removes penalties for automakers failing to meet emissions benchmarks.

Analysts highlighted Tesla’s precarious financial outlook amid intensifying competition and regulatory headwinds. The company’s Q2 earnings revealed a 12% year-over-year revenue drop to $22.5 billion, with automotive revenue declining 16% to $16.7 billion. Elon Musk acknowledged potential “rough quarters” ahead, citing the expiration of EV incentives and rising tariff costs. Stifel cut its price target for Tesla to $440 from $450, citing risks to the Energy and Automotive segments. While the firm retains a “Buy” rating, it emphasized that Tesla’s long-term value hinges on advancements in autonomous driving and robotics, including its Full Self-Driving technology and Robotaxi ambitions.

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