Tesla (NASDAQ: TSLA) is kicking off June with a jolt, and not the good kind.

Shares of this electric vehicle giant slid 2.46% early Monday, June 2nd, 2025 trading around $338, as the market reacts to growing pressure on Elon Musk’s EV empire.

Here’s what has Tesla stock in a tailspin to start the month.

A Make-or-Break Month for Tesla

June is just another month for Tesla or…

…it could be one of its most pivotal in recent memory.

Investors are anxiously watching for several big-ticket items, such as Q2 delivery numbers (expected in early July), updates on Tesla’s robotaxi or FSD (Full Self-Driving) rollout, China sales trends, especially as local competitors like BYD continue to eat market share, and ongoing margin pressure from price cuts across global markets.

With so many moving parts, Wall Street is bracing for a potentially volatile few weeks.

High Hopes, High Valuation

Let’s not forget; Tesla is still trading at a P/E ratio of 186, a sky-high valuation that only works if the growth narrative stays intact. Any sign of demand weakness or delayed innovation could send investors running for the exits.

The $1.11 trillion market cap leaves little room for error. And while Tesla bulls point to AI, energy storage, and autonomous driving as future growth levers, the core EV business still drives the bottom line, and right now, that core is under pressure.

If You Are a Tesla Investor

Some are calling this dip a buy-the-dip moment; others see it as a sign to tread carefully. After all, Tesla stock is still up more than 30% year-to-date, meaning there’s room for a cooldown.

For long-term holders, volatility is nothing new. But for new investors eyeing TSLA in June? Strap in, it could be a bumpy ride.