TLDR
- Tesla stock fell 0.7% to $328.10 in early Monday trading after five consecutive days of gains
- Company stopped taking new leasing orders for Model S and Model X vehicles across Europe
- Tesla faced regulatory issues in France over Full Self-Driving marketing claims
- Stock has dropped 18% year-to-date despite being up 53% over the past 12 months
- European sales have declined sharply in key markets including Germany and the UK
Tesla stock opened lower on Monday, falling 0.7% to $328.10 after a brief five-day winning streak. The electric vehicle maker faces mounting pressures from both market performance and operational decisions in key international markets.
The current trading price sits just $6 above the $322.16 level Tesla closed at on June 20. That was right before the company launched its self-driving taxi service in Austin, Texas on June 22.
The robo-taxi launch was modest in scope. A handful of Tesla Model Y vehicles transported selected passengers around a limited Austin area with safety monitors present.
Shares jumped to $348.68 on June 23, the day after the service began. However, the stock has struggled to maintain momentum since that point.
Most robo-taxi related gains appeared before the actual launch. Tesla shares rose 35% between the October 10 robo-taxi demonstration event and the June 22 service start date.
Investors now wait for catalysts like expansion to new cities and removal of safety monitors. The stock has declined 18% year-to-date despite climbing 53% over the past 12 months.
European Market Challenges Mount
Tesla announced it would stop accepting new leasing orders for Model S and Model X vehicles throughout Europe. The decision sent shares down about 2% at the end of July.
European customers can still buy existing inventory. However, new custom orders are no longer available through Tesla’s online platform.
The change came shortly after a minor vehicle refresh. Industry observers suggest the move reflects low sales volume and shifting European buyer preferences toward more affordable EVs.
Tesla has reported massive drops in car sales across key European markets. Germany and the UK have seen particularly sharp declines in the first half of 2025.
Regulatory and Brand Issues Emerge
French regulators issued an official notice to Tesla over potentially misleading marketing of its Full Self-Driving technology. The action raises questions about how Tesla promotes its autonomous driving capabilities to consumers.
Some analysts point to CEO Elon Musk’s political activities and public disputes as factors damaging brand trust. Many consumers view Tesla as an extension of Musk’s personal brand.
Ben Nelmes from New AutoMotive offered a stark assessment. He told Reuters that markets shrugging off poor sales numbers suggests Tesla’s future depends on delivering workable self-driving vehicles.
The broader European EV market continues growing despite Tesla’s struggles. The European Automobile Manufacturers’ Association reported that hybrid-electric and EV registrations exceeded 50% of EU market share in the first half of 2025.
Tesla stock trades around the same levels it held before the Austin robo-taxi launch, with investors seeking clearer signs of growth momentum.
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