Elon Musk’s company, Tesla, has announced a 14% decrease in vehicle deliveries during the second quarter of the year. This continues the trend of the electric car-maker’s struggles.
In the months of April to June, Tesla delivered just over 384,000 vehicles, marking the second consecutive quarterly drop in deliveries.
The company is facing increased competition from other car manufacturers, including China’s BYD. Additionally, Musk’s controversial role as a government efficiency czar in the Trump administration has been cited as a reason for the declining numbers.
Musk has since stepped down from this role, but has engaged in public disputes with US President Donald Trump over a large spending bill supported by the White House.
In response, Trump has suggested cutting subsidies for Musk’s companies or even deporting him. He also proposed using the ad-hoc Department of Government Efficiency (known as Doge) to harm Musk’s businesses.
On social media, Trump wrote, “Elon may be receiving more subsidies than any other human in history, by far. Maybe we should have DOGE take a closer look at this? There’s a lot of money to be saved!”
Musk replied, “I am literally saying CUT IT ALL. Now.”
Trump has stated that Musk’s opposition to the spending bill is due to a provision that eliminates incentives for purchasing electric vehicles.
“He’s upset about losing his EV mandate, he’s very upset. He could lose a lot more than that, I can tell you that,” Trump told reporters on Tuesday.
While investors closely monitor the quarterly deliveries metric, some analysts have downplayed its significance.
“The good news: the ~14% decline should be the lowest point,” wrote Gene Munster from Deepwater Asset Management on Musk’s social media platform, X. “I have projected a 10% decrease in September and flat numbers in December.”
Munster also predicted that the uncertainty surrounding the US EV tax credit would drive sales in the near future as buyers rush to purchase before it expires.
He also noted that Tesla’s recent launch of robotaxis in Austin, Texas could be crucial for the company.
“Over the next two years, I believe investors will be satisfied with flat deliveries as long as there is measurable progress in autonomy,” Munster added.
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