Tesla stock plunged nearly 7% last week after CEO Elon Musk announced that the company is entering a “transition period,” making the prospects for August 2025 look bleak. He said that the firm could have a rough period due to the loss of US electric vehicle tax credits. Trump’s ‘Big, Beautiful bill’ phased out EV tax credits on automobiles, and buyers can no longer claim the $7,500 benefits.
Also Read: RGTI Stock Sees Bullish Options Surge Despite 1.18% Drop
For example, the Tesla Model Y currently costs $44,990, and buyers can apply for a rebate through the tax credits. This reduces its price to $37,490, incentivizing buyers to choose environmentally friendly automobiles and encouraging more EV sales. The tax credits will no longer be applicable from September, which could affect Tesla stock after August 2025.
“We probably could have a few rough quarters,” said Elon Musk on the recent policy changes. If that wasn’t enough, Tesla also fell out of the trillion-dollar club last week after reporting weak earnings. Investors are unhappy with the results as revenue declined 12% and profit fell 16%. The firm is now getting competition from European and Chinese car makers, making TSLA’s August 2025 stock prospects weaker.
Tesla Stock August 2025 Prospects
Traders Union has revised its Tesla stock price prediction, estimating a dip in value in August 2025. The projection estimates that the average price for TSLA could be around the $304 range next month. The stock is currently hovering at the $316 mark in the indices. Also, the forecast estimates that TSLA could plunge to $274 if the downturn persists.
Also Read: Intel Earnings Miss Tanks Stock 3.7% Despite $12.9B Revenue Beat
TSLA’s prospects will now depend on how Elon Musk’s firm navigates out of the ongoing critical situation. In conclusion, taking an entry position in Tesla stock should be avoided, as Musk himself said that the firm will have a few rough months. Chances of Tesla stock dipping in value could begin this week and continue in August 2025.