Tesla Stock Daily Drive

June 06, 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." I'm your host, Dusty. Today, we're diving into what’s been a whirlwind in the financial markets, particularly for Tesla, and giving you a thoughtful guide through the smoke and mirrors of the market world.

Kicking things off with a snapshot of yesterday’s market movement, it was quite the mix. While the Dow Jones edged down by a slight 0.2%, the S&P 500 stayed nearly flat, showing investors' uncertainty. The Nasdaq, however, dipped a noticeable 1.1%, reflecting investor caution in this rapidly changing landscape.

The day’s headlines were dominated by Tesla, as the company saw its stock take a significant hit. Tesla's shares plunged over 14%, closing at $284.70. This sharp decline seemed to be fueled by a heated dispute involving Tesla's CEO Elon Musk and President Donald Trump over a budget bill. This bill proposes ending the $7,500 electric vehicle subsidy sooner than planned. For Tesla, which relies heavily on this subsidy for its U.S. sales, the news doesn't just scratch the surface—it digs deep.

The tug-of-war doesn't end there. President Trump has also threatened to cancel Elon Musk’s governmental contracts, not just impacting Tesla but SpaceX as well. Analysts are now recalibrating their views, considering Tesla's stock as fairly valued at around $250 a share, a stark contrast to previous insights claiming it was overvalued.

Zooming out a bit, the broader market was troubled by weak economic data. U.S. private sector payrolls rose a mere 37,000 in May—unexpectedly low and marking a two-year low. Jobless claims also topped forecasts again, stirring anxiety about the job market’s resilience. GDP data showed a contraction for Q1, with an influx of imports before impending tariffs raising inflation concerns.

On the international stage, a chat between President Trump and Chinese President Xi didn’t quite forge the path many hoped for, leaving U.S.-China trade relations on tenterhooks. Meanwhile, the ECB’s decision to cut rates by 25 basis points signals potential relief as inflation eases across the eurozone.

In commodities, gold is holding strong above $3,300 per ounce, while silver and platinum saw a surprising rally. As for digital assets, Bitcoin experienced its own rollercoaster, settling at around $101,200 after an earlier surge.

Now, let's touch on some investment tips. With Tesla’s volatility, it might be tempting to dive in. However, new investors should tread carefully, understanding that while the dip might spell opportunity, it's crucial to stay informed about the broader geopolitical climate and Musk’s next moves. Keep an eye on the unfolding dynamics between Tesla and the administration, as these could redefine the landscape for electric vehicles in the U.S.

As we wrap things up, remember, navigating these choppy waters requires calm, thoughtful contemplation. I'm Dusty, and as always, when the dust settles, only the truth remains. Thanks for tuning in to "Tesla Stock Daily Drive." Until next time, happy investing.

Financial markets experienced a day of mixed activity on Thursday, June 5, 2025, with investors reacting to various economic data points and geopolitical developments. Tesla's stock, in particular, saw significant movement.

Tesla Stock Performance (TSLA)

Tesla shares experienced a sharp decline on June 5, 2025, with reports indicating a drop of over 14%. The stock closed at $284.70, a decrease of $47.35 or 14.26% from the previous day's close of $332.05. The day's trading range for Tesla was between a high of $324.54 and a low of $273.21. Volume for the day was substantial, at 288,646,442 shares.

This downturn was attributed to a public feud between Tesla CEO Elon Musk and US President Donald Trump. Musk expressed disapproval of a US budget bill that President Trump aims to pass. This bill includes the potential expiration of the $7,500 electric vehicle (EV) subsidy at the end of 2025, seven years earlier than previously scheduled. As all Tesla vehicles sold in the US currently qualify for this subsidy, its early expiration could lead to lower sales volumes due to increased prices for consumers. President Trump also threatened to cancel all of Musk's government contracts and subsidies, which would likely impact Musk's SpaceX more than Tesla, though Tesla could potentially be excluded from selling emissions credits.

Analysts noted that before this selloff, Tesla was considered overvalued, but at current prices, it is viewed as fairly valued, with a fair value estimate of $250.00 per share. Despite the recent drop, Tesla's stock has been volatile in 2025, down about 30% year-to-date and underperforming the S&P 500. The company's Q1 earnings showed a 9% year-over-year decline in revenue to $19.3 billion and a 50% drop in adjusted EPS to $0.27. However, the Energy Generation & Storage segment saw a 67% sales increase to $2.7 billion. EV deliveries in Q1 were approximately 337,000, with production around 363,000. Gross margin contracted to 16.3% from 17.4% in the same period last year.

Reports this week also indicated that Tesla's sales continued to decline in May across several European countries, contributing to the stock's losses.

Broader Market Movements and Economic Indicators

On June 5, 2025, U.S. and global markets showed mixed results as investors processed volatile trading, weak economic data, and uncertainty regarding U.S. trade policy and global economic growth.

* Major Indices: The Dow Jones Industrial Average fell 0.2% to 42,427.74, ending a four-day winning streak. The S&P 500 remained nearly flat. The Nasdaq Composite experienced a decline of 1.1%.
* Economic Data:
* U.S. private sector payrolls for May rose by only 37,000, significantly below expectations and marking the lowest increase in two years. April's data was also revised slightly lower.
* Weekly jobless claims exceeded forecasts for the second consecutive week, coming in at 245,000.
* The latest GDP data confirmed a -0.3% annualized contraction in the first quarter, largely due to a surge in imports ahead of tariff hikes.
* The US May ISM Services PMI was reported at 49.9, below expectations and indicating a contraction for the first time since June 2024. The New Orders index within this report was at its weakest since December 2022.
* Trade and Geopolitics: A much-anticipated call between President Donald Trump and Chinese President Xi Jinping did not result in a significant breakthrough on trade, which disappointed markets and subdued risk appetite.
* European Central Bank (ECB): The ECB cut its deposit rate by 25 basis points to 2.0%, signaling that its easing cycle might be nearing its end as inflation subsides in the eurozone.
* Currencies: The U.S. dollar index slipped 0.1% to 98.72.
* Commodities: Gold consolidated above $3,300 per ounce. Industrial metals, particularly silver and platinum, rallied sharply.
* Digital Assets: Bitcoin was trading around $101,200, down from an earlier high near $106,000.
* Inflation: April's headline and core inflation stood at 2.2% and 2.5%, respectively. However, the Federal Reserve Bank of San Francisco warned that higher tariffs are expected to push inflation up in the coming quarters before progress toward the 2% target resumes next year. Household inflation expectations have risen sharply.

Investors are now looking ahead to the U.S. non-farm payrolls report.

Sources:
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Tesla Stock Daily Drive