Tesla (TSLA 1.12%) stock had a rough week last week, dropping nearly 15%. Shares fell again today with its robotaxi launch in Austin, Texas, coming soon. While the company hasn’t confirmed the specific June date for the launch, reports say it could be Thursday, June 12.

One Wall Street analyst thinks investors are going to be disappointed by the much-hyped event. That helped push Tesla stock lower by as much as 4.5% early Monday. Shares had recovered from that drop and even turned slightly positive at 12:33 p.m. ET.

Image source: Tesla.

Tesla’s self-driving technology needs to impress

Baird analyst Ben Karrow downgraded Tesla shares from a buy to a hold rating for reasons that include high expectations for the upcoming robotaxi launch as well as the very public feud CEO Elon Musk had with President Trump last week.

Regarding the robotaxi introduction, Musk has said much of his company’s value should be based on Tesla’s self-driving technology. Investors anticipating that event have helped push Tesla stock higher by more than 12% in the past month, even including last week’s decline.

The Baird analyst thinks lofty expectations for the event are already built into Tesla’s share price. He also cited uncertainty and potential blowback from the public spat between Musk and President Trump, reports Barron’s. Tesla needs government support in the form of favorable autonomous driving regulations, among other matters, beyond any electric vehicle (EV) credits that have been used to help spur demand for its products.

Tesla’s robotics head leaves company

More news came from the EV leader this weekend, too. Milan Kovac, Tesla’s executive in charge of Tesla’s Optimus humanoid robotics segment, said on Friday that he is moving on from the company. He started at Tesla in 2016 and reported directly to Musk. Kovac expressed confidence in Tesla’s future, and Musk thanked him for his “outstanding contributions.”

That just adds more uncertainty for investors, though, as Optimus is another key future catalyst for Tesla. For now, all eyes will be on the robotaxi news coming soon.

Tesla (TSLA -2.97%) stock has been in recovery mode lately. After a months-long decline to start the year, shares have soared more than 40% in the last month. Much of that rebound came after CEO Elon Musk told analysts that he planned to spend more time at the electric vehicle (EV) maker and less in his role in Washington, D.C.

The stock is slumping today, however, as many investors shift their focus to the EV business itself. And the numbers don’t look promising. Shares dipped as much as almost 5% Monday morning and remained lower by 3.3% as of 11:35 a.m. ET.

Image source: Tesla.

Tesla sales aren’t rebounding

All eyes are now on Tesla’s EV sales data, especially from China. Tesla delivered 13% fewer EVs in the first quarter, but those bullish on the stock pointed to a good reason for that decline. Telsa was finishing a refresh of its bestselling Model Y, which many investors believed would spur a sales push once completed. China is one key market for investors to watch.

Yet the second quarter hasn’t started well for Tesla sales in the largest global EV market. Registration data followed by Wall Street analysts showed Chinese sales plunged about 26% in April and the first half of May, Barron’s reported over the weekend. That represents a sharp decline from the roughly flat China sales in the first quarter.

The latest data should be released soon by the China Passenger Car Association (CPCA), and investors may be selling the stock in anticipation of more bad sales results. With sales plummeting in many European markets, the China market is becoming even more critical for Tesla.

If the next report from the CPCA doesn’t show a major turnaround, it’s possible Tesla stock will continue the decline that began today.