Tesla Tanks 8% as Robotaxi Ambitions Face Headwinds Amid 16% Sales Slide

- Tesla’s Q2 vehicle deliveries dropping 16% year-over-year, triggering an 8% stock slide. - Waymo outpacing Tesla by surpassing 100 million autonomous miles and accelerating paid robotaxi rides. On July 26, 2025, Cryptopolitan reported that Tesla's Q2 sales dropped 16%, deepening investor concerns over its ambitious robotaxi plans. As a result, Tesla’s stock fell 8% after the company reported weaker vehicle delivery numbers in Europe and California. The stock later recovered 3.5% but remains down approximately 22% year-to-date. This performance highlights the mounting challenges Tesla faces in the competitive autonomous vehicle market. During a recent earnings call, Tesla CEO Elon Musk struck an optimistic tone despite looming concerns, reiterating the company’s focus on artificial intelligence and robotics while also unveiling plans to scale Tesla’s robotaxi trials in Austin, Texas. He hopes to reach 50% of U.S. households by year-end, pending regulatory approval. Currently, the trial uses 10–20 Tesla Model Y SUVs equipped with self-driving capabilities and safety drivers. These vehicles have collectively clocked around 7,000 test miles. Musk also aims to expand Tesla’s autonomous network by 2026, an expansion that would allow customers to use their personally-owned cars to earn income through rideshare services. However, Tesla’s progress continues to draw skepticism, as critics question its ability to compete at scale, citing regulatory hurdles and delays in autonomy milestones. For now, Tesla’s robotaxi ambitions pale in comparison to Alphabet’s Waymo. Waymo has logged over 100 million self-driven miles and offers paid robotaxi rides in more than ten cities, including New York and Philadelphia. Its service generates 250,000 rides weekly, contributing $373 million in quarterly revenue under Alphabet’s “Other Bets” division. California’s regulatory landscape presents additional barriers for Tesla. State authorities require approvals for autonomous ride-hailing services, but Tesla has not yet secured the necessary permits. This failure restricts its expansion compared to rivals like Waymo in the U.S. or Apollo Go in China. Continued delays in achieving compliance could stall Tesla’s ability to scale its robotaxi operations. Investor sentiment remains cautious, but some analysts retain “buy” ratings on Tesla stock, citing the long-term potential of its AI-driven robotaxi strategy. Nevertheless, the growing gap between Tesla’s promises and competitor milestones highlights the tough road ahead. Tesla faces significant challenges in realizing its vision for autonomous mobility. According to Nasdaq data, Tesla Inc. (TSLA) traded at $167.45 per share as of July 26 at 12:00 UTC, a price that reflects a partial recovery from its earlier dip. Meanwhile, Alphabet Inc. (GOOGL), Waymo’s parent company, stood at $145.10 per share with a 1.2% daily gain. This contrast showcases the shifting market sentiment as Tesla vies to lead the rapidly evolving autonomous vehicle landscape.