Tesla’s $36 Billion After-Hours Plunge: What Musk’s Political Outburst and Global Sales Slump Mean for Investors

Wall Street Stunned as Tesla Sheds Billions: Can Robotaxi Hopes Overshadow Musk’s Latest Controversies?

Tesla’s stock nosedives after controversy and falling international sales. Is the robotaxi launch enough to steer a comeback in 2025?

Quick Facts:

  • – $36 Billion: Tesla market value lost after hours
  • – 45%: UK Tesla registrations drop in May 2025
  • – 123%: Tesla Model Y sales growth in Australia
  • – June 12: Key robotaxi demo date in Austin

Tesla Inc. (NASDAQ:TSLA) sent shockwaves through Wall Street on Wednesday evening, hemorrhaging nearly $36 billion in market value after CEO Elon Musk’s latest public battle with lawmakers and a string of weak international sales reports. Shares slid 3.55% in after-hours trading and remain under heavy pressure as markets open, with analysts predicting another dip looming.

Industry watchers note that Musk’s latest rants—this time a brash call to “KILL the BILL” regarding a Republican-led spending measure—have poured fresh fuel onto Tesla’s already volatile stock. His fiery comments about Congress allegedly “bankrupting America” set off a social media storm on X, the platform Musk owns, and left investors wondering how much Musk’s politics might be distracting from Tesla’s day-to-day business.

Meanwhile, the corporate drama is overshadowed by real, numbers-driven concerns: International demand is sliding. May numbers show a jaw-dropping 45% crash in Tesla’s UK registrations, with Germany, France, and Sweden also reporting sharp declines. The one bright spot? Australia—where Model Y sales have more than doubled, offering a glimmer of hope as momentum wavers elsewhere.

Tesla now faces intense scrutiny ahead of its much-hyped robotaxi demonstration, scheduled for June 12 in Austin, Texas. Investors and tech enthusiasts are watching closely—some betting the robotaxi display could revive faith in Tesla’s future, while others eye emerging threats from fast-moving competitors like Waymo and other global EV giants.

Q&A: What Is Behind Tesla’s Wild Market Ride?

  • Q: Why did Tesla lose $36 billion overnight?
  • A: The plunge was sparked by CEO Elon Musk’s political tirades and confirmation of weak international sales data.
  • Q: Has this affected Tesla’s long-term growth plans?
  • A: Yes—investors are questioning if political distractions and slowing global sales could derail Tesla’s ambitious robotaxi and EV expansion plans.

How to Track Tesla’s Recovery in 2025

Stay alert for updates from Tesla’s June 12 robotaxi demo in Austin—it’s seen as a key turning point for the company’s narrative. Monitor global registration numbers, upcoming earnings reports, and continued statements from Musk, which often trigger major swings in stock performance. For context and real-time market impacts, check resources like MarketWatch or CNBC for the latest.

Why Is Elon Musk’s Political Clout Now a Business Risk?

In 2025, CEO activism can move billions in market value overnight. Musk’s increasingly vocal online persona is generating fierce debate—not just among his millions of social media followers, but also in boardrooms and on Wall Street. Some investors worry that political firestorms are clouding Tesla’s big tech push, especially as the EV industry faces new regulatory headwinds. Even loyal shareholders are asking: Will Musk’s public feuds distract too much from product innovation?

How Are Rivals Gaining Ground?

Tesla is no longer the only show in town. Advanced autonomous driving ventures from brands like Waymo, as well as growing momentum in the EV markets of China and Europe, are putting pressure on Tesla to innovate rapidly and deliver on its robotaxi promises. Industry insiders predict a flurry of new EV models and AI-powered mobility solutions in 2025 and beyond.

Bottom Line: Can Tesla Rebound?

Tesla’s future now hangs on a knife’s edge. June 12’s robotaxi unveiling will be the must-watch event of the summer, but the company’s leadership must restore investor confidence fast—or risk falling further behind global competition. Eyes are on Austin—and on Musk’s next move.

Tesla Investor Survival Checklist:

  • ✔ Watch for the June 12 robotaxi event in Austin
  • ✔ Track international sales data for signs of recovery or further decline
  • ✔ Monitor Elon Musk’s public statements and their impact on market sentiment
  • ✔ Compare Tesla’s innovation pace to rivals like Waymo and key Chinese EV firms
  • ✔ Stay tuned to trusted news sources for breaking updates
Elon Musk’s Robotaxi Dreams Plunge Tesla Into Chaos

ByRufus Thompson

Rufus Thompson is an accomplished writer and thought leader specializing in new technologies and financial technology (fintech). He holds a Master's degree in Financial Engineering from the prestigious Massachusetts Institute of Technology and a Bachelor's degree in Economics from the University of California, Berkeley. With over a decade of experience in the fintech sector, Rufus has held key positions at Cleareye.ai, where he focused on leveraging artificial intelligence to enhance financial services. His insightful articles have been featured in numerous industry publications, providing readers with in-depth analysis on the intersection of technology and finance. Rufus is dedicated to demystifying complex concepts, making them accessible to a broad audience.

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