Tesla’s troubles have worsened as the most recent production and delivery numbers indicate a larger decline than anticipated.
A total of 384,122 Teslas were delivered from April to June this year, marking a 13.5% decrease compared to the same period last year and the second consecutive quarter of declining output.
Wall Street analysts had projected Tesla to report approximately 1,000 more deliveries.
This news comes as a blow to Tesla’s CEO Elon Musk, who has been under attack this week from President Donald Trump on a personal level, as well as towards his companies.
Money blog: Customers to get up to £2,000 compensation from water companies
Musk found himself at odds with Trump and the majority of US congresspeople due to his opposition to the so-called big beautiful bill approved by the US Senate.
His criticism of the bill’s potential debt increases led to Trump threatening to end subsidies for Musk’s various businesses and even to deport him.
Being the founder and CEO of multiple businesses has made Musk the wealthiest person in the world, according to Forbes.
In addition to Tesla, Musk founded the space technology company SpaceX and Starlink. He also acquired the social media company Twitter, which he rebranded as X.
The underperformance of Tesla prompted Musk to step away from full-time politics and return to focusing on Tesla’s operations.
Read more:
AstraZeneca exit is a frightening prospect for the City and the government
Santander bank deal could mean TSB name disappears from UK high street
Following months of declining share prices, protests at Tesla showrooms, sales drops, and instances of car defacing, Musk decided to leave his work with the Trump administration’s Department of Government Efficiency (DOGE).
Not everyone interpreted the figures negatively.
Analysts at financial services firm Wedbush stated: «Tesla’s future looks brighter than ever in our opinion, with advancements in autonomous, FSD [full self-driving], robotics, and other technologies on the horizon. Autonomous and robotics are expected to drive 90% of the valuation in the coming years, but Musk must prioritize driving Tesla over his political stances.»
After Musk’s involvement in political matters caused a 5% drop in Tesla’s share price earlier in the week, the stock rose by 4.5% on Wednesday.
The latest financial results for Tesla will be released later this month.
In the first quarter of the year, Tesla’s profits decreased by 71% to $409m (£306.77m) from $1.39bn (£1.04bn). Revenues also fell below expectations, declining by 9% to $19.3bn (£14.5bn).
In the second quarter of this year, Tesla faced a significant decline in deliveries, with only 384,122 vehicles being delivered from April to June. This marked a 13.5% drop compared to the same period last year, signaling a continued slump in output for the electric car manufacturer.
Wall Street analysts had anticipated slightly higher delivery numbers from Tesla, with expectations falling short by about 1,000 vehicles. This disappointing performance comes amidst a challenging week for Tesla CEO Elon Musk, who has been facing personal attacks from President Donald Trump and criticism of his companies.
Mr. Musk’s opposition to a bill approved by the US Senate has put him at odds with both the President and the majority of Congress. His concerns about the bill’s impact on national debt prompted Trump to threaten to end subsidies for Musk’s businesses and even consider deportation.
Despite being recognized as the world’s richest man by Forbes, thanks to his roles at Tesla, SpaceX, Starlink, and the acquisition of Twitter, Musk’s focus has shifted back to Tesla following the company’s poor performance.
Analysts at Wedbush remain optimistic about Tesla’s future, citing advancements in autonomous technology, full self-driving capabilities, and robotics as key drivers of the company’s valuation. However, they caution that Musk should prioritize leading Tesla over his political endeavors.
Following Musk’s recent foray into political matters, Tesla’s stock experienced a 5% decline earlier in the week but rebounded with a 4.5% increase on Wednesday. The company’s financial details for the quarter will be closely watched when they are released later this month.
In the first quarter of the year, Tesla reported a significant decline in profits, dropping by 71% to $409 million from $1.39 billion. Revenues also fell short of expectations, decreasing by 9% to $19.3 billion.
Overall, Tesla’s recent challenges underscore the need for the company to focus on improving production and delivery numbers to regain investor confidence and sustain its position in the electric vehicle market.
A total of 384,122 Teslas were delivered from April to June this year, a 13.5% drop on the same period last year and the second quarter of slumping output. Wall Street analysts had expected Tesla to report about 1,000 more deliveries. It’s bad news for Tesla chief executive Elon Musk in a week of attacks from President Donald Trump on him personally, as well as his companies. Money blog: Customers to get up to £2,000 compensation from water companies. Mr Musk found himself on the wrong side of Mr Trump and the majority of US congresspeople in his opposition to the so-called big beautiful bill approved by the US Senate. His criticism of the inevitable debt rises the bill will result in led Mr Trump threatening to end subsidies for Mr Musk’s numerous businesses and to deport him. His role as founder and chief executive of numerous businesses has made him the world’s richest man, according to Forbes. As well as Tesla, Mr Musk founded space technology company SpaceX and Starlink. He also acquired the social media company Twitter, which he rebranded X. It was the poor performance of Tesla that pushed him out of full-time politics and back to the Tesla offices. Read more: AstraZeneca exit is a frightening prospect for the City and the government. Santander bank deal could mean TSB name disappears from UK high street. After months of share price tumbles and protests at Tesla showrooms, sales drops and car defacings, Musk left his work with the Trump administration’s Department of Government Efficiency (DOGE). Not everyone viewed the figures as negative. Analysts at financial services firm Wedbush said: «Tesla’s future is in many ways the brightest it’s ever been in our view given autonomous, FSD [full self-driving], robotics, and many other technology innovations now on the horizon with 90% of the valuation being driven by autonomous and robotics over the coming years but Musk needs to focus on driving Tesla and not putting his political views first.» After a 5% share price fall earlier this week when Mr Musk strayed back into political matters, Tesla stock rose 4.5% on Wednesday. The latest financial details for Tesla will be published later this month. In the first three months of the year, Tesla’s profits fell by 71% to $409m (£306.77m) from $1.39bn (£1.04bn). Revenues were also well below forecasts, dropping 9% to $19.3bn (£14.5bn).
SOURCE