Tesla's Stock Plunges 1.12% on Record $25.1B Trading Volume as Robotaxi Launch and Tax Credit Expiration Spark Investor Divide

Tesla (TSLA) fell 1.12% on August 14, 2025, with a trading volume of $25.1 billion, the highest on the day. The stock’s movement coincided with developments in the company’s autonomous driving initiatives and investor sentiment shifts. Analysts and investors remain divided on the implications of these updates for Tesla’s near-term performance.

Elon Musk confirmed plans to launch Tesla’s Robotaxi service in the Austin area by September 2025, positioning it as a key milestone for the company’s self-driving ambitions. However, Guggenheim analysts reiterated a “Sell” rating, citing skepticism over the platform’s execution and lack of transparency regarding safety monitor protocols. The firm’s $175 price target, implying a nearly 50% decline from current levels, reflects ongoing bearish sentiment despite Musk’s public optimism.

Investor focus also turned to the impending expiration of the $7,500 U.S. EV tax credit at year-end. Tesla has intensified marketing efforts to accelerate pre-September 30 orders, with delivery wait times for the Model Y stretching to 4-6 weeks. Anecdotal evidence from Tesla influencers suggests a surge in customer inquiries, though whether this translates to record Q3 deliveries remains uncertain. The tax credit’s removal could dampen demand, creating a potential headwind for the stock in the coming quarters.

Deutsche Bank increased its Tesla stake by 20.8% in Q1, now holding over 10 million shares valued at $2.61 billion. The move underscores institutional confidence in Tesla’s long-term potential, particularly as the company advances its Full Self-Driving software and expands Robotaxi operations. Meanwhile, Musk’s public warnings to short sellers—urging them to exit positions before Tesla achieves “autonomy at scale”—highlighted the heightened stakes for investors on both sides of the trade.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to now delivered a compound annual growth rate of 6.98%, with a maximum drawdown of 15.59%. The approach showed steady growth overall, but a significant decline in mid-2023 emphasized the risks of high-volume trading strategies during volatile market conditions.