Tesla stock closed at $295.88 on July 9 slipping 0.65%. The drop comes after a volatile week marked by political headlines and growing concerns over the company’s corporate governance. As Elon Musk leans deeper into politics, investors are voicing frustration. Meanwhile, Tesla’s failure to schedule its Annual General Meeting (AGM) before a legal deadline is raising red flags.
TSLA under pressure: Governance void and political fallout
Tesla’s stock performance is drawing scrutiny, especially as the company appears to be violating Texas corporate law. By law, it must hold an AGM within 13 months of the last one. That deadline is Sunday, July 13—and so far, no meeting has been announced.
In response, 27 institutional shareholders managing more than $1.5 trillion in assets sent a letter demanding action. They are urging Tesla to immediately set a meeting date and give shareholders adequate time to prepare. This level of concern signals more than routine dissatisfaction—it signals potential legal escalation.
“We’re concerned about the global drop in sales, the share prices tanking, and the CEO’s attention span,” said Kevin Thomas, CEO of the Shareholder Association for Research and Education.
Analysts split: Praise for Musk’s leadership, panic over his priorities
Dan Ives of Wedbush Securities—a longtime Tesla bull—continues to view the stock as undervalued. He believes it should be trading over $600. According to him, Elon Musk remains Tesla’s most valuable asset. Still, Ives issued a warning this week, saying:
“We believe this is a tipping point in the Tesla story. We urge the board to act now.”
Musk responded bluntly: “Shut up, Dan,” dismissing calls for oversight of his political involvement.
Many investors are uneasy. Musk’s focus has shifted again—this time toward launching a new political group called the “America Party.” This move has triggered backlash from political allies, most notably Donald Trump. Consequently, investors fear the loss of federal EV subsidies and a decline in operational focus.
TSLA stock performance snapshot
- July 9 close: $295.88 (–0.65%)
- 7-day range: $293.55 – $306.12
- Year-to-date performance: –26.7%
- Market cap: ~$955 billion
- Q2 2025 deliveries: –13.5% YoY
- YTD stock loss since Dec. 2024 peak: ~–39%
Tesla’s Q2 sales report revealed its first annual decline since going public. Furthermore, it posted a record drop in quarterly deliveries. Now, analysts warn that Tesla may soon lose its title as the world’s top EV maker to China’s BYD.
Political distractions hurt investor confidence
Musk’s political activities continue to weigh heavily on Tesla’s stock. On July 7, shares plunged nearly 7.6% in premarket trading following his party announcement. It marked the stock’s worst single-day drop since early June.
Two concerns dominate the investor mindset:
- Musk’s distractions from running the company
- The risk of losing government support for electric vehicles
What’s next: Eyes on AGM deadline
If Tesla fails to announce an AGM by July 13, shareholders may appeal to a Travis County judge to force compliance with Texas law. As of July 10, Tesla has remained silent, raising the likelihood of legal intervention.
Final thoughts
Tesla stock remains under pressure. A mix of weak sales, political distractions, and delayed governance is shaking investor confidence. While analysts like Ives still see long-term upside, the company must act swiftly to reassure shareholders and realign leadership focus.
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