Tesla Stock Daily Drive

June 05, 2025 • Finance

Hosted by Dusty

About This Episode

Generated finance podcast with host Dusty based on prompt: Daily stock movements for Tesla. Focus on the stock, but provide any important background information that is necessary.

Transcript

Welcome to "Tesla Stock Daily Drive" with your host, Dusty. Today, we're diving deep into the twists and turns of Tesla's recent stock performance and the rumbles across the broader financial markets. So, buckle up, and let's get rolling.

Starting with Tesla, today wasn’t particularly rosy. Shares took a noticeable dip, plummeting between 3.2% and 3.6%. By the afternoon, Tesla's stock price slid to $333.21, marking a drop of over $11. Meanwhile, another report clocked it at $332.05, both indicators of a challenging day on the market floor. This is part of a larger trend, leaving the stock over 17% down year-to-date.

What's causing Tesla's bumpy ride? Well, let's unpack this. It seems that losing market share is a crucial component. In May, Tesla's sales in Germany fell by a drastic 36%, even as the country's overall EV market soared by almost 45%. Similarly, sales from Tesla's China factory shrank by 15% compared to the previous year. And that's not all; drops in sales were also noted in Italy and the U.K. Yet, not all news is grim—Australia and Norway saw a bump in Tesla's numbers. With the Model Y's new version expected in the U.K. soon, June might bring a breath of fresh air.

Adding another layer of complexity, Tesla CEO Elon Musk made headlines with his candid commentary on political matters. He's parted ways with the Department of Government Efficiency and didn't hold back in his critique of a recent spending bill. These actions may have tightened investor's collars a bit as they could influence Tesla's regulatory environment, especially with the impending launch of their robotaxi technology in Austin.

There’s also chatter about Tesla insiders selling company stock, a move often perceived with a hint of skepticism. Couple this with a reported 13% year-over-year decline in vehicle deliveries for Q1, and you see why some analysts are teetering. Yet, opinions vary widely. While some see a looming storm, others, like prominent investor Cathie Wood, are optimistic about Tesla's robotics-driven future.

Swinging our focus to the broader market on this eventful June day, we observed mixed signals. While the S&P 500 and Nasdaq inched up, the Dow Jones hit a minor setback, breaking its winning streak. The tech sector itself was a patchwork of gains and losses, with Meta enjoying a 3% rise, and heavyweights like Apple dipping slightly.

In the realm of economic indicators, there’s plenty to mull over. Weaker employment data has investors on edge, anticipating more detailed labor reports. Meanwhile, the ISM Services Index suggests a contraction, stirring further curiosity about economic growth.

Globally, we're seeing movements too. The Bank of Canada kept interest rates stable, while the Eurozone noted a cool down in inflation, dropping just below the ECB's target—a hopeful sign for potential rate cuts. Interestingly, currency markets behaved unpredictably, with the US Dollar lagging behind while currencies in the Asia-Pacific region surged ahead.

Commodity markets didn't go unnoticed either; there’s strength in industrial metals while oil prices took a hit following Saudi Arabia’s production increase. Adding to the mix, tariffs on steel and aluminum have been doubled in the US, and Australia’s economic growth for Q1 came in slower than expected. Not to forget, China is showing signs of contraction in the manufacturing sector, which could ripple across global trade.

For investors, it's essential to remain level-headed amidst this bustling news cycle. Diversification remains key, especially when markets behave unpredictably. Keep an eye on industries poised for growth, like those connected to green technologies, while staying informed about global economic shifts.

That’s all for today's journey on "Tesla Stock Daily Drive." Remember, as we sift through these financial forecasts and data streams, keep your eyes on the horizon. When the dust settles, only the truth remains. Stay insightful, stay informed, and drive safe. Catch you next time!

Okay, here is a summary of the financial news focusing on Tesla's stock performance and broader market indicators from June 4, 2025.

Tesla Stock Plunges Amid Sales Concerns and Musk's Political Commentary

Tesla (TSLA) shares experienced a significant downturn on Wednesday, June 4, 2025, with the stock falling around 3.2% to 3.6%. By the afternoon, Tesla's stock was trading at $333.21, a decrease of $11.06 (-3.21%). Another report indicated a current price of $332.05, down $12.22 (-3.55%). This decline contributed to a year-to-date drop of over 17%.

The plunge was attributed to several factors. Ongoing data indicated that Tesla is losing market share globally. Specifically, German sales reportedly fell 36% year-over-year in May, even as overall EV sales in the country jumped nearly 45%. Shipments from Tesla's factory in China also reportedly declined 15% year-over-year in May. Sales also reportedly declined in Italy and the U.K. during the same period. However, there was some positive news with sales reportedly rising in Australia and Norway in May. Tesla expressed expectations for sales to pick up in June, particularly in the U.K., as it awaits delivery of the new version of the Model Y.

Investor sentiment was also likely impacted by CEO Elon Musk's public statements. Musk stepped away from his leadership role in President Trump's Department of Government Efficiency (DOGE) and publicly criticized a spending bill, calling it a "disgusting abomination". This public split with President Trump and other Republicans is a concern for investors, especially as Musk lobbies for federal regulations on autonomous driving. The company is preparing to launch its robotaxi technology in Austin.

Adding to investor concerns, two Tesla insiders reportedly sold company stock, a development seen as a negative sign. The company also reported a 13% year-over-year decline in vehicle deliveries in Q1 2025, with 336,681 vehicles delivered. Despite a recent rally sparked by Musk's announcement that he would refocus on Tesla, the stock has struggled in 2025. Analysts hold mixed opinions on Tesla's future, with some, like Cathie Wood, predicting significant growth driven by the robotaxi business, while others, like GLJ Research, have set a strikingly low price target of $19.05, citing dwindling sales in Europe and challenges in the full self-driving market. The overall analyst consensus is a "Hold" rating with a mean target price of $292.17, which the stock had already surpassed.

Broader Market Movements and Economic Indicators on June 4, 2025

On the broader market front, stocks showed a mixed performance on Wednesday. The S&P 500 and Nasdaq Composite inched higher, marking their third consecutive day of gains, with the Nasdaq adding 0.3%. However, the Dow Jones Industrial Average slipped by 0.2%, snapping a four-session winning streak. Technology company shares were mixed, with Meta (META) climbing 3% and Nvidia (NVDA), Microsoft (MSFT), Amazon (AMZN), and Alphabet (GOOG) also advancing, while Apple (AAPL) fell slightly.

Investors were digesting weaker-than-expected employment data, as private sector payroll numbers released by ADP dropped to their lowest level in two years. This has increased the focus on the upcoming May jobs report from the Labor Department. The US ISM Services Index data for May also missed expectations, coming in at 49.9, indicating a contraction.

Other economic news included:
* The Bank of Canada held its interest rates at 2.75%.
* Eurozone inflation slowed to 1.9% in May, down from 2.2% in April, falling below the European Central Bank's (ECB) 2% target for the first time since September 2023. Core inflation also declined to 2.4%. This has fueled expectations of an ECB rate cut.
* The US Dollar was the worst-performing major currency in Forex, while Asian-Pacific currencies led.
* Industrial metals like platinum and copper had a strong day, and gold recovered from previous losses.
* Oil prices closed down 1.12% after Saudi Arabia announced an increase in oil production.
* The US doubled tariffs on steel and aluminum to 50%, effective June 4, 2025.
* Australia's economy grew by 0.2% in Q1, slower than anticipated.
* China's Caixin Global manufacturing PMI for May dropped to 48.3, indicating a contraction.

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Tesla Stock Daily Drive