Tesla stock faces challenges with declining deliveries and potential loss of EV tax credits, raising correction concerns.

Tesla (TSLA) faces challenges with declining vehicle deliveries, down 13% in Q1 and 13.5% in Q2. CEO Elon Musk’s political entanglements add to the woes. A new bill could eliminate federal EV tax credits, hurting Tesla. Stock trading at high multiples, raising concerns about a correction.

Despite challenges, many investors hold faith in Tesla’s long-term vision, betting on technology-driven transformation. Tesla rolls out a driverless taxi service in Austin, hinting at a tech-focused future. The company is transitioning to a technology powerhouse with projects like Optimus humanoid robot targeting new markets.

While ambitious, Tesla’s bets on automation and AI come with risks due to regulatory hurdles and public acceptance. Investor sentiment remains optimistic, but caution is advised due to volatility. Analysts maintain a “Hold” rating with a price target reflecting potential downside. Waiting for signs of a turnaround may be prudent for investors.

Read more at Yahoo Finance: Is Tesla Stock Headed for a Major Correction? What Investors Should Know.