Tesla, the electric vehicle leader helmed by Elon Musk, has experienced a significant downturn in vehicle deliveries, marking a 14% decline in the second quarter of this year. This troubling trend comes as the company faces rising competition from rivals such as BYD from China and increasing scrutiny over its production and delivery metrics.
During this turbulent time, former President Donald Trump has entered the fray, suggesting a reevaluation of the subsidies provided to Tesla and Musk’s other ventures. On social media, Trump indicated that the Department of Government Efficiency, humorously dubbed DOGE, could potentially reevaluate these financial incentives, accusing Musk of receiving unprecedented subsidies.
The latest data shows that Tesla delivered just over 384,000 vehicles between April and June, marking the second consecutive quarterly decline. Investors and analysts have closely monitored these figures, which are pivotal for the company’s market performance. Despite the bleak numbers, some analysts remain optimistic, suggesting that the second quarter might be the bottom point for Tesla as they predict stabilization in the coming months.
In response to Trump’s allegations, Musk himself has expressed strong discontent, stating, “I am literally saying CUT IT ALL. Now,” emphasizing his frustration over the evolving situation and the potential impacts on electric vehicle incentives. Trump believes that Musk’s opposition is linked to a recent spending bill, which aims to limit the incentives available for electric vehicle purchases. The former president remarked, “He’s upset that he’s losing his EV mandate, he’s very upset…”
As competition heats up for Tesla, the stakes are high not only for Musk and his company but also for the future of electric vehicles in the U.S. market. With uncertainty surrounding U.S. EV tax credits and the potential repercussions for Tesla’s sales strategy, all eyes are on this ongoing battle between Trump and Musk. Analysts like Deepwater Asset Management’s Gene Munster project a cautious optimism, stating that deliveries may stabilize as the EV market contemplates new developments and regulatory changes over the next couple of years.