Tesla's post-earnings slide has left the stock its most oversold since March 2025, with the relative strength index at 14. Shares are down 30% this year against an 8% gain for the S&P 500, and Deutsche Bank suspects Tesla may show no significant milestones until late in the year. BYD's stock, meanwhile, has moved the other way.
The post-earnings slide in Tesla stock has made it the most oversold since March 2025, according to Yahoo Finance AlphaSpace data. Tesla's RSI currently stands at 14, and shares are down 30% this year compared to an 8% gain for the S&P 500.
A momentum indicator, the relative strength index measures the speed and magnitude of a stock's recent price movements. A reading below 30 suggests a stock may be oversold and could be poised for a rebound.
Robotaxi and Optimus timelines drive the selling
The sell-off intensified after executives offered few concrete updates on the pace of the Robotaxi rollout or the commercialization timeline for the Optimus humanoid robot during last week's earnings call. That came on top of an earnings miss versus Wall Street estimates, which has left investors questioning when the company's AI investments will begin to pay off.
Tesla said it will commit $25 billion in capital expenditures for 2026, roughly three times its historical spending. A significant increase is also expected in 2027 as Musk ramps up Optimus and Robotaxi production.
In a note on Tuesday, Deutsche Bank analyst Edison Wu warned that Robotaxi and Optimus are scaling slower than anticipated: "Robotaxi and especially Optimus (supply chain) are scaling slower than anticipated". Wu suspects Tesla may not demonstrate any significant milestones until late in the year while cash burn increases materially.
BYD rises 22% as Tesla drops 23%
The two most visible EV companies have taken different paths, according to 24/7 Wall St. BYD's stock has risen 22% during the last month while Tesla's shares are down 23% over the same period.
Neither company is working in an easy market. U.S. EV sales have dropped as much as 20% in the first half of the year, and sales in China fell 13% in the same period to 4.73 million.
Yet the EU has gone BYD's way. Registrations of the brand there rose 168% in the first half to 130,743, while Tesla's comparable number was an increase of 75% to 124,242.
24/7 Wall St. reads the gap as a question of what investors can track: BYD is an EV company measurable by its success in the EV sector, while Elon Musk's claims that Tesla is an AI and robotics company make its valuation much more confusing.
Sources: Yahoo Finance, 24/7 Wall St.
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