Tesla Stock Tumbles as Hype Meets Reality

**John Johnston** (0:00)
This is what makes me sick to my stomach, but as a person with a brain, I have to come to this conclusion because it checks every single box for why we have stalled on Robotaxi, and Tesla has completely flipped on the guidance they gave us last year. I have never felt worse about the stock than I do today. Hi everyone, JJ here, welcome back. Well, Tesla stock has taken a big dive in the session after earnings, which did not go well. The earnings call or the report itself. I did a video about that yesterday, but it was down more than expected. After hours, it was down about 4 percent, ended up being down 14.52 percent on the day, which is one of the biggest dives it's had for quite some time.
We will see some of the headlines based around this. You can see the news stories based on this were not good. Tesla short sellers meant $4 billion of profit as shares nosedive. Tesla warns of slower Robotaxi rollout as shares tumble. Here is how Tesla made from investing in SpaceX. SpaceX stocks have been going down 50 percent in the earnings report. It was June 30th that they booked that gain, and it's gone down since then, so that wasn't good either. Brands blocks Tesla FSD software over safety worries. Tesla carbon credit revenue drops 67 percent. Can AI energy storage and robots drive Tesla stock from here? And Wall Street Journal reality bites Elon Musk and his Tesla. SpaceX believers shares of Tesla tumble about 15 percent on disappointing quarter, and SpaceX has fallen 50 percent from its highs. So we're going to get some reaction from Tesla investors. People are not happy. They do seem to be losing faith, especially about Tesla and this talk of Tesla being rolled into SpaceX and the sort of conspiracies about Elon wanting the stock of Tesla to go down for that reason. But that's just one part of it. People are really getting concerned, I think. So this headline from Electric, who is all over this in detail about Tesla, and more than any other outlet, Tesla crashes 12%, sheds $140 billion, as Elon Musk, trust me, just trust me, doesn't hold anymore.
And other news from Electric as well, Tesla still has no plan for hardware 3 owners promised FSD.
So that's ongoing. People are not happy if they got hardware 3 about FSD working, which Elon promised years ago is on video promising that the hardware would work. And now there's a light version and it's still not going well. And Tesla says Robotaxi is expanding, its own charts show it's not. I talked about this yesterday too, cumulative paid Robotaxi miles. See the graph there, if you're watching this on video, not just listening to it. They said it was exponential, but that is not exponential. If anything, it seems to be flattening off. So multiple areas that they're concerned about. Let's get into this article a little bit, and then I'll flip to what actual investors are saying. A month ago, Elon Musk was crowned the world's first trillionaire after a record public offering of SpaceX. Now investors are growing impatient with the pioneering businessman as the bills come due on his most ambitious promises before SpaceX and Tesla.
And SpaceX was actually up on the day while Tesla down a lot. Tesla shares fell 14.5% on Thursday, erasing $215 billion of market value. After the electric car maker missed earnings targets and had negative cash flow for the first time in two years, it was part of a wider stock sell-off amid fears that big tech companies are overspending on artificial intelligence. So, somebody pointed that out. There was unfair to say that these stocks have gone down both SpaceX and Tesla recently because there are other stocks gone down too. The memory makers, companies related to memory just going parabolic and also the chip makers too. And so everything's had a sell-off. Google had that sell-off on the same day. But I said to that person, sure, that's true, but both of these companies, if you look at P-Ratio, Price to Earnings Ratio and other valuation metrics, there aren't many stocks still even after these pullbacks with higher market valuations, P-Ratios, than these two companies in the US market. Big companies anyway. Might be able to find more. There is definitely a few. And the short sellers are currently having a field day on quite a few of these stocks, including SpaceX and Tesla as well.
On an earnings call, Musk walked back earlier guidance on the rollout of its Robotaxi ride-hailing service. So this was a big problem. He's used to talking big. At one point he said, it's going to cover half the US population by the end of 2025