Tesla’s Tumbling Deliveries: Musk’s Political Stance Blamed

Tesla’s second-quarter vehicle deliveries have taken a sharp dive, with the company reporting 384,122 units, a 13.5% decrease from the 443,956 delivered a year ago. This significant drop is largely attributed to the growing backlash against CEO Elon Musk’s political stance, combined with an aging vehicle lineup, pushing Tesla towards its second straight year of annual sales decline.
The figures underscore a challenging environment for Tesla, as the global EV market continues to grow. Analysts had anticipated higher delivery numbers, averaging around 394,378 vehicles, indicating a broader miss for the company. The market’s perception of Tesla’s brand has been impacted, particularly in Europe and the US, where sales have slumped most dramatically.
The financial repercussions are evident in Tesla’s stock performance, which has fallen by 25% this year. Investors are increasingly concerned about brand damage due to Musk’s public political engagements. A notable incident involved a public split between Trump and Musk in early June, resulting in a substantial $150 billion loss in market value for Tesla, highlighting the direct link between the CEO’s actions and the company’s valuation.
Even a refresh of the best-selling Model Y, intended to boost demand, inadvertently led to production halts and delayed purchases. While a cheaper vehicle is reportedly in the pipeline, Wall Street remains skeptical about Tesla’s ability to reverse the trend this year. Achieving Musk’s ambitious target of delivering over a million units in the second half of the year, a record for the company, is seen as a formidable and unlikely challenge by analysts.