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Tesla Stock: Legal Blow and European Slump Spark Concerns

Felix Baarz by Felix Baarz
August 2, 2025
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A Florida court has ordered Tesla to pay a record $329 million penalty for a fatal 2019 Autopilot crash, marking a rare legal defeat for the company. The jury found Tesla partially liable, arguing its driver-assistance system was improperly marketed for roads beyond its designed scope—a factor in the high-speed collision that killed a 22-year-old passenger. Meanwhile, Moody’s warned of shrinking operating margins, projecting a decline to below 8% by 2026 due to weakening European demand, expiring U.S. tax incentives, and fierce price competition in China.

Market Pressures Mount

Tesla’s European registrations plummeted 48.5% in Portugal and 35% year-to-date in Italy, starkly underperforming the broader EV market’s growth. The stock’s downward trend worsened as it breached a key technical support level, contrasting with peers benefiting from AI-driven rallies. Adding to woes, Tesla’s Robotaxi ambitions face scrutiny after footage showed software glitches during autonomous tests, forcing reliance on human drivers. While a $4.3 billion battery deal with LG Energy offers a bright spot, the dual legal and demand crises threaten investor confidence in Musk’s vision.

Tags: Tesla
Felix Baarz

Felix Baarz

My name is Felix Baarz, and I look back on over fifteen years of experience as a business journalist. I have always been fascinated by the mechanisms and dynamics of global financial markets as well as the complex economic and political interconnections that shape our world. With this passion, I have made a name for myself as an expert on international financial markets and dedicate myself with great commitment to making even the most complex topics understandable and accessible to my readers. My roots lie in Cologne, where I was born and raised. Early on, my curiosity about economic topics and international developments sparked my interest in journalism. After completing my studies, I began my career as a business editor at a respected German trade publication. Here I laid the foundation for my professional career, but my curiosity soon drew me out into the wider world. A turning point in my life was moving to New York, where I lived for six years and gained insight into leading media houses. In this vibrant metropolis, I was able to report firsthand from the heart of the global financial world. From daily developments on Wall Street to major economic policy decisions that make waves worldwide, I had the opportunity to write about central topics that move people and markets alike. This time shaped my perspective and sharpened my view of global interconnections.

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