Tesla's Trading Volume Drops 24.48% to $34.597 Billion Second Highest of the Day

On May 21, 2025, Tesla (TSLA) experienced a significant decline, with its trading volume reaching $34.597 billion, marking a 24.48% decrease from the previous day. This placed Tesla as the second-highest traded stock of the day. The stock price of Tesla dropped by 2.68%.

Tesla's stock has been influenced by various factors, including investor optimism about its potential to reach new all-time highs. The company's strategic advantages in artificial intelligence, software monetization, and a potentially favorable regulatory environment under a second Trump administration are seen as key drivers for its long-term growth. Tesla's focus on high-margin software sales, particularly its Full Self-Driving (FSD) subscriptions, has contributed to its overall profitability, despite a lower gross margin compared to competitors like BYD.

Tesla's long-term strategic emphasis on artificial intelligence provides it with a significant competitive advantage. The company has invested over $5 billion in AI infrastructure, positioning it to lead in autonomous driving and expand into broader AI services across industries. This strategic investment sets Tesla apart from competitors like BYD, which lacks comparable AI training capabilities.

Elon Musk, the CEO of Tesla, has expressed his intention to remain in his position for at least the next five years and to acquire more controlling shares in the company. This leadership stability is seen as a positive factor for investors, who are optimistic about Tesla's future prospects. The company's robotaxi initiative is also expected to mark a historical change in transportation, although there is speculation about whether the potential of this technology is already priced into the stock.