Why Tesla Stock Plunged 26% in July

Tesla stock fell 26% in July 2026, its worst month in over three years. The decline reflects investor concerns about slowing autonomous driving progress and deteriorating profitability, with net income down 64% over three years despite 8% revenue growth. The stock now trades at 150-200x forward earnings, making it a speculative bet on future robotaxi and humanoid robot businesses rather than current EV operations.