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Tesla stock struggles amid flat EV sales and costly AI bets by Elon Musk.

Market News
21 May 2026
24/7 Wall Street
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Bearish
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Tesla's stock is down 7% this year as its core electric vehicle (EV) sales remain flat globally, with declines in key markets like the EU and stiff competition in China. Elon Musk's AI ambitions, including costly projects like Robotaxi and Optimus robots, have led to significant losses, with SpaceX's AI division alone losing $2.5 billion in Q1. While Tesla's auto revenue rose 16% year-over-year in Q1, investors await clear signs of growth in both its traditional car business and AI-related products to boost the stock. The company's future hinges on scaling these innovations and regaining market share in the competitive EV landscape.

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