For the past couple of years, Tesla’s (TSLA) core business had been struggling. Yet, investors were willing to look beyond those quarterly numbers as they were swept up in CEO Elon Musk’s bold AI vision. The promise of robotaxis, humanoid robots, and autonomous driving convinced many that Tesla was far more than just an automaker.
However, those bold AI promises are no longer enough to convince investors to buy or hold on to TSLA stock. They want proof that these expensive ambitions can translate into stronger financial performance. But Tesla's fiscal Q2 earnings failed to provide that proof, dragging the stock down almost 15% yesterday and another 3% today as of this writing. TSLA has also fallen 30% year-to-date (YTD), becoming the worst-performing stock in the Magnificent Seven group.
