Tesla Shares Drop 1.64% With $24.9B Volume Ranking Third as Musk Shifts Strategy to Autonomous Vehicles

On August 20, 2025, Tesla (TSLA) closed with a 1.64% decline, trading at a daily volume of $24.9 billion, ranking third in market activity. The drop followed CEO Elon Musk’s comments on the company’s product strategy, which raised concerns among investors about long-term growth prospects.

Musk stated that Tesla’s newly launched six-seat Model Y L variant in China—priced at $47,200—might not enter U.S. production. He cited the rise of self-driving technology as a key factor, suggesting that the demand for traditional multi-seat vehicles could diminish as autonomous driving becomes widespread. This decision aligns with Tesla’s pivot toward robotaxis in the U.S., where the company has launched an invite-only ride-hailing service in Austin. Musk’s emphasis on autonomy has previously led to controversial design choices, such as removing traditional gear and signal stalks, which were later reintroduced as aftermarket options.

Analysts noted that the Model Y L’s limited U.S. rollout could hinder Tesla’s ability to compete in the growing large SUV segment, particularly as Chinese EV rivals like Xiaomi and Xpeng introduce affordable six-seater models. In China, where EV adoption is more mature, Tesla faces intense competition from local brands offering advanced features at lower prices. However, the U.S. market remains less saturated, and delaying the Model Y L’s launch risks ceding ground to competitors in a segment where larger vehicles are popular.

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