Tesla Stock Drops 8.5% Weekly, Falls 15% in June, Marking Worst Monthly Performance in Over a Year
Alina Collins
Tesla fell 15% in June, its worst monthly performance since February 2025 — a fatal-crash investigation and a broader tech selloff are the two forces driving the slide.
How steep is the decline?
Shares closed Friday at $369.88, down 1.2% on the day and 8.5% for the week.
The full-month June drawdown hit 15% — the worst since February 2025, per Dow Jones Market Data.
This means → roughly one-sixth of Tesla's market cap evaporated in a single month, signaling that two separate risks are shaking the stock's pricing logic at once.
What happened in the fatal crash?
A Model 3 veered off a road near Houston last Friday, struck a home, and killed an occupant inside.
The driver told police the Autopilot system was engaged; multiple federal agencies launched investigations.
Tesla's VP of AI and software, Ashok Elluswamy, posted on X that the driver had manually pressed the accelerator pedal.
In plain terms = the two accounts directly contradict each other — system failure or human action remains unresolved until investigators reach a conclusion.
What is driving the tech selloff?
Concerns over whether the AI boom can sustain itself triggered a selloff in memory-chip stocks, dragging the broader tech sector down.
The S&P 500 fell 0.8% Friday; Tesla and Musk's SpaceX (SPCX) were both caught in the downdraft.
This means → Tesla sits in two baskets at once — "AI play" and "high-valuation tech" — so when sector sentiment turns, it takes hits from both sides.
How did Musk's personal wealth take the hit?
The simultaneous drop in Tesla and SpaceX caused Musk to lose his "trillionaire" status.
In plain terms = the "trillionaire" label rested on paper valuations — one bad month erased it, showing just how tightly personal fortune is tied to share price.
Where does the uncertainty go from here?
The crash investigation carries unresolved legal and reputational risk — a finding of system fault would be a material blow to the Autopilot business.
When the tech selloff stabilizes is equally unclear; together, the two threads form the core pressure on Tesla's current valuation.
This reflects a broader reality: Tesla's stock is no longer just a carmaker's story — it carries a dual exposure to autonomous-driving regulatory risk and AI-sector sentiment risk.
Content is for reference only, not financial advice.