Tesla's Tumultuous Journey: Market Woes, Political Challenges, and a Bold Robotaxi Rollout

As of last week, Tesla (TSLA) shares declined by 3.34% but showed a weekly increase of 1.59%. However, the stock has experienced a 14.21% decrease since the beginning of the year. Tesla's current market capitalization stands at approximately $1,115.93 billion.

Recently, Tesla's sales in France have witnessed a significant downturn. In May, the company saw a 67% year-over-year decrease in vehicle registrations in France, with only 721 cars sold. Since the start of the year, Tesla's cumulative sales in France fell 47.23% compared to a broader market decrease of 8.25% during the same period.

In the U.S., President Trump's recent remarks have stirred additional challenges for Tesla. Trump emphasized that American automakers, including Tesla, must manufacture vehicles and parts within the United States. This directive comes amidst past practices where manufacturers sourced components from Canada, Mexico, and Europe.

Amidst these developments, Tesla CEO Elon Musk responded to allegations from The New York Times regarding drug use by publicly refuting the claims. Musk stated, "I want to clarify that I am not using drugs. The New York Times is simply making things up." This rebuttal addresses speculation around his involvement in the 2024 presidential campaign allegedly using substances.

Elon Musk also revealed on social media that Tesla has been successfully testing the Model Y's autonomous driving system on public roads in Austin, Texas, without incidents. The company plans to deliver Model Y vehicles autonomously from the factory to customers starting in June, a month ahead of schedule.

Anticipating further advancements, Tesla is preparing to launch its Robotaxi service in Austin on June 12. This service aligns with Musk's vision of leveraging autonomous technology and AI to reshape Tesla’s business strategy.

Despite recent positive movement, Tesla's stock remains down by nearly 12% year-to-date. Musk's departure from his official advisory role with Trump has shifted focus back to Tesla's core operations, potentially reassuring investors.

However, a UBS survey highlighted concerns over Tesla's global brand appeal deteriorating due to controversies surrounding Musk's political engagements. Consequently, UBS maintained a "sell" rating with a target price of $190, reflecting a possible 47% downside from recent market prices.

Tesla encountered intensified competition in China and Europe, losing ground to local brands. In April, BYD outpaced Tesla by becoming the leading pure EV seller in Europe, reflecting Tesla's challenging atmosphere.

The rollout of the Robotaxi service in Austin signifies a pivotal step in Tesla's strategic direction. Musk intends to initially deploy approximately 10 autonomous taxis, expanding to 1,000 within a few months, showcasing Tesla's commitment to innovation.