TLDR
- Tesla stock fell 1.2% to $320.11 following a fire at its German Gigafactory battery plant and delayed crash reporting to NHTSA
- The company faces a federal investigation for submitting dozens of crash reports months late for Autopilot and Full Self-Driving systems
- Tesla’s European sales dropped 33% year-over-year in H1 2025, with German registrations plunging 58%
- Stone Fox Capital’s Mark Holder issued a sell rating, citing concerns over “overpromising and underdelivering” on robotaxi plans
- The stock is testing $320 support with potential downside toward $310 if bearish pressure continues
Tesla stock closed down 1.2% at $320.11 on Thursday as investors grappled with fresh operational and regulatory headwinds. The decline came after news broke of a fire at the company’s German Gigafactory battery production facility.
The blaze forced a partial shutdown and evacuation at the Grunheide plant. This latest setback adds to Tesla’s already struggling European operations, where sales have fallen sharply this year.
Tesla’s European performance has been particularly weak in 2025. Sales dropped 33% year-over-year during the first half of the year across the continent.
Germany, Tesla’s key European market, saw registrations plummet 58% during the same period. Chinese competitor BYD capitalized on Tesla’s struggles, with sales in Germany surging 418%.
Federal Investigation Adds Regulatory Pressure
The National Highway Traffic Safety Administration revealed Tesla delayed reporting dozens of crash incidents involving its driver-assistance systems. The company submitted crash reports for Autopilot and Full Self-Driving features months after federal deadlines.
This violation of mandatory reporting timelines has triggered a new federal investigation. The probe adds to existing concerns about Tesla’s transparency regarding autonomous vehicle safety data.
Reports suggest Tesla has used cherry-picked safety data to make its autopilot systems appear more reliable. Meanwhile, competitors like Waymo continue expanding their autonomous driving services to new cities.
Tesla’s autonomous driving tests in Austin have encountered repeated issues with basic driving decisions. The company had promised to launch its robotaxi program for millions of Americans by the end of 2025.
Market Headwinds Mount
Beyond operational challenges, Tesla faces financial pressure from policy changes. The company warned investors it could lose up to $1.11 billion in revenue due to rollbacks of EV regulatory credits.
These credits have historically supported Tesla’s profitability and cash flow. The transition from Biden-era to Trump-era EV policies has created uncertainty around future subsidy levels.
Stone Fox Capital’s Mark Holder issued a sell rating on Tesla stock this week. He cited concerns about the company’s ability to deliver on ambitious robotaxi promises.
“Tesla is facing a real scenario where market share is slipping all around the world after peaking two years ago,” Holder said. He warned the stock could head “far lower” if the company continues “overpromising and underdelivering.”
The stock opened Thursday at $322.00 and touched an intraday high of $325.09. It retreated to a low of $318.70 before settling at $320.11.
Technical indicators show the stock testing support near $320. The next critical support level sits at $310 if selling pressure intensifies.
Resistance levels remain between $330 and $335. These levels align with Tesla’s failed attempts to reclaim its early August highs.
Trading volume exceeded 55 million shares Thursday, above recent averages. The elevated volume suggests increased institutional activity or short-term positioning changes.
Analysts have lowered price targets following Tesla’s recent earnings miss. Concerns center on the company’s high valuation despite slowing earnings growth and delivery forecasts.
The combination of regulatory scrutiny, operational disruptions, and competitive pressure has created a challenging environment for Tesla. The German factory fire represents the latest in a series of setbacks that have pressured the stock throughout 2025.
Tesla’s Bollinger Bands are narrowing, indicating potential volatility ahead. The stock currently trades near the lower band, suggesting short-term bearish momentum unless a decisive bounce occurs.
