Tesla Stock Slides Amid Broad Renewable Energy Sell-Off: What's Going On?

Tesla Inc (NASDAQ:TSLA) shares are trading lower during Tuesday’s session amid a broader market downturn in renewable energy stocks. The sell-off appears to be triggered by proposed changes to U.S. tax incentives.

What To Know: The U.S. Senate Finance Committee’s draft tax bill calls for a complete phase-out of solar and wind energy tax credits by 2028, accelerating the rollback of incentives established under the Inflation Reduction Act of 2022.

This legislative proposal could impact Tesla’s energy division, which includes solar panels and its Powerwall and Megapack battery storage solutions. While Tesla’s primary business is electric vehicles, its energy generation and storage segment is a growing part of its revenue.

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The elimination of federal investment tax credits (ITC) for solar and energy storage systems, potentially effective January 1, 2026, could significantly curb demand for Tesla’s solar and battery products in the U.S.

Furthermore, recent legislative efforts by House Republicans in May to eliminate the $7,500 new-vehicle EV tax credit, effective December 31, 2025, also cast a shadow over Tesla’s core automotive business.

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Although some analysts suggest Tesla’s sales may be less impacted due to brand loyalty and its prior exhaustion of certain credit allocations, the removal of such incentives could still dampen overall EV demand and disadvantage Tesla compared to competitors who may still qualify for some credits in 2026.

This double-whammy of reduced incentives across both its energy and automotive sectors presents a challenging policy landscape for the company.

Price Action: According to data from Benzinga Pro, Tesla stock is down 3.81% to $316.57 amid selling pressure evident throughout Tuesday’s session. The session volume reached 66.976M shares at 2:45pm EDT, notably lower than the average 100-day volume of 125.970M.

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How To Buy TSLA Stock

By now you're likely curious about how to participate in the market for Tesla – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of Tesla, which is trading at $315.76 as of publishing time, $100 would buy you 0.32 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

Image courtesy of Tesla