why did tesla stock drop today

Tesla stock dropped today despite reporting record third-quarter deliveries of 497,099 vehicles because investors are concerned that the surge in sales was primarily driven by a last-minute rush to take advantage of a federal EV tax credit that expired at the end of September. This has caused speculation that demand was pulled forward, potentially leading to weaker sales in the fourth quarter and into 2026. Analysts and investors view the current sales spike as a one-time event rather than sustainable growth, contributing to a "sell-the- news" reaction. Additionally, Tesla's share price drop reflects caution about future delivery guidance, margin trends, and whether demand can hold without the subsidy. Other factors influencing the drop include market volatility, increased competition, and concerns about Elon Musk's external ventures and political involvement, which have affected the company's brand and investor sentiment.