Electric vehicle index plunges 4.4% as global selloff deepens

The Bloomberg Electric Vehicle Price Return Index plunged 4.43% on Tuesday, its worst single-day drop in recent months, as a rout swept across global EV stocks from New York to Hong Kong.

The Bloomberg Electric Vehicle Price Return Index tumbled 4.43% to 3,591.03 on Tuesday, its steepest decline in recent months, as a rout swept across global EV stocks from New York to Hong Kong.

"Tesla could see its stock price decline after deliveries are reported, even as we raise our Q2 estimate," UBS analyst Joseph Spak, who rates the stock neutral with a $364 price target, said.

STMicroelectronics led the decline, with its Paris-listed shares falling 8.53%. Ambarella dropped 7.4%, while Pony AI ADR slid 6.6%. Tesla fell 5.7%, extending losses ahead of its Q2 deliveries report expected next week. Hong Kong-listed names including Yadea Group, RoboSense, CALB, Xiaomi, Horizon Robotics and Li Auto all declined between 4.32% and 4.88%. Only two index components gained: Geely Auto H-shares rose 2.12% and India's Ola Electric Mobility added 2.61%.

The selloff comes as the EV industry faces a confluence of headwinds: demand concerns in China and Europe, intensifying price competition, and uncertainty over tariff policies. Spak estimates Tesla's Q2 deliveries at 405,000 units, up from 380,000 previously, but still potentially below consensus forecasts ranging from 400,000 to 420,000 — a scenario that could pressure the stock further.

Tesla Leads Losses Ahead of Q2 Delivery Report

Tesla's 5.7% decline erased roughly $35 billion in market value, bringing its week-to-date loss to more than 8%. The stock now trades near $364, the exact level of Spak's price target, implying limited upside based on current analyst consensus. The company is expected to report Q2 deliveries within the next week, with Spak's revised estimate of 405,000 units representing 5% year-over-year growth.

One potential bright spot: Tesla's Energy Generation and Storage business could report up to 40% sales growth in Q2, eight times faster than its automotive segment. The division has been earning roughly twice as much per unit as the car business, according to Spak, which could provide a buffer if vehicle deliveries disappoint.

Global Tech Rout Compounds EV Weakness

The EV selloff unfolded against a broader technology downturn. South Korea's KOSPI index slid 5.5% as chip heavyweights Samsung Electronics and SK Hynix fell 5.5% and 7.5%, respectively. SpaceX shares plunged 16% in their third straight daily decline, wiping approximately $1 trillion in market value from the post-IPO peak, according to IG analyst Tony Sycamore.

In Australia, the tech sector fell 1.6%, with the ASX 200 closing 0.3% lower. US stock futures pointed to further declines, with Nasdaq emini futures down 1.9% ahead of the Wall Street open.

For investors, the question is whether the EV selloff represents a buying opportunity or the start of a deeper correction. Tesla trades at roughly 16 times forward earnings, a discount to its historical average but still above traditional automakers. The broader Bloomberg EV index has now given back most of its gains from the first quarter, when optimism over falling battery costs and policy support drove a rally.

This article is for informational purposes only and does not constitute investment advice.