Tesla stock has given up all the gains from the recent robotaxi hype, and it's not hard to understand why. What many expected to be a groundbreaking announcement has turned out to be little more than a limited beta test with problems. In one case, Tesla's robotaxi crossed in the wrong direction. Other tests revealed unexplained speeding and hard braking, which NHTSA brought to its attention.     

If Tesla's robotaxis are found to pose a risk, regulators could act quickly to restrict or delay their launch.  

Investor anxiety may also rise ahead of second-quarter deliveries figures due this Wednesday. Consensus is around 385,000 vehicles, which is better than recent estimates, which ranged from 350,000 to 370,000. If the figure falls short, it could further weigh on Tesla stock sentiment. And with the company continuing to lose ground in Europe and China, a disappointing result is far from out of the question.    

To make matters worse, Elon Musk again criticized the budget bill working its way through Congress, calling it a “debt slavery bill.” Musk warned conservatives of the political fallout and even floated the idea of launching a new party. Trump quickly hit back, suggesting that Musk's outrage is actually over something else: proposed cuts to electric vehicle subsidies that could deal a major blow to Tesla's bottom line. 

On top of that, competition is heating up for Tesla, and demand is showing cracks as mentioned above. As for the former, Xiaomi's electric SUV, the YU7, saw a surge in first orders, fueling speculation that Tesla may have to cut prices to remain competitive, a move that would squeeze margins and signal weakness. While Tesla still has room to maneuver thanks to its strong profitability, that margin of safety won't last forever.      

On the demand side, Tesla registrations in Denmark fell 61.6% year-on-year in June to 1,282 units. The picture is not much better across Europe: Tesla's new car sales were down 27.9% in May compared to the same month last year, even though total EV sales in the region were up 27.2%. It is unclear when the company's situation will improve, as trade wars with the U.S. can only worsen it. 

And finally, by traditional valuation metrics, Tesla stock is, at the very least, expensive. That can be justified if there are solid fundamentals or at least credible hopes for the company's future potential. But right now, what's on the horizon are trade wars that could hit Tesla hard, budget proposals that threaten its revenues, and, of course, the ongoing feud between Trump and Musk, which isn't helping either.