Elon Musk's Tesla has reported a 14% decline in vehicle deliveries in the second quarter of the year, as the electric car-maker's problems show no sign of abating. The just over 384,000 vehicles it delivered between April and June represents the second quarterly drop in a row. Tesla faces increasing competition from rivals, including China's BYD. Musk's controversial role as a government efficiency czar in the Trump administration has also been blamed for the plummeting numbers. Musk has since left the role - but has publicly sparred with US President Donald Trump over a massive spending bill pushed by the White House. In response, Trump floated cutting the subsidies received by Musk's firms or even deporting him. Trumpsuggestedthat the ad-hoc Department of Government Efficiency - known as Doge - could be used to harm the billionaire's companies. "Elon may get more subsidy than any human being in history, by far," Trump wrote on social media Tuesday. "Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!" "I am literally saying CUT IT ALL. Now," Musk replied. Trump has said that Musk's opposition to the spending bill stems from a provision that removes incentives to buy electric vehicles. "He's upset that he's 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. Though the quarterly deliveries metric is tracked closely by investors, some analysts have shrugged off the figures. "The good news: that ~14% should mark the bottom," wrote Deepwater Asset Management's Gene Munster on Musk's social media site X. "I have September down 10% and December flat." Munster said he expected uncertainty about the US EV tax credit to boost near-term sales as buyers scramble to purchase before it expires. Tesla'spushinto robotaxis which kicked off in Austin, Texas last month in uncertain fashion could prove critical, he said. "Over the next two years, I think investors will be fine with flat deliveries as long as autonomy shows measurable progress," Munster added. Sign up for our Tech Decoded newsletterto follow the world's top tech stories and trends.Outside the UK? Sign up here.
Tesla deliveries fall for second quarter in a row
TruthLens AI Suggested Headline:
"Tesla Reports 14% Decline in Vehicle Deliveries for Second Consecutive Quarter"
Bbc News
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TruthLens AI Summary
In the second quarter of the year, Tesla reported a 14% decline in vehicle deliveries, marking the second consecutive quarter of falling numbers for the electric vehicle manufacturer. The company delivered just over 384,000 vehicles between April and June, a downturn attributed to increasing competition from rivals such as China's BYD. Elon Musk's controversial involvement as a government efficiency czar during the Trump administration has also been cited as a contributing factor to this decline. Although Musk has stepped back from this governmental role, tensions between him and former President Trump have escalated, particularly over a significant spending bill proposed by the White House. Trump has hinted at potential repercussions for Musk's businesses, including the possibility of cutting subsidies or deportation, emphasizing that Musk may be receiving unprecedented financial support from the government. Musk's response was equally direct, advocating for a complete cut of these subsidies.
Despite the concerning quarterly delivery figures, some analysts remain optimistic about the future trajectory of Tesla. Gene Munster from Deepwater Asset Management suggested that the 14% drop could represent a low point for the company, predicting a 10% decline in September but a stabilization in December. He noted that uncertainty surrounding the U.S. electric vehicle tax credit might lead to a surge in sales as consumers rush to purchase vehicles before potential changes take effect. Furthermore, Tesla's recent efforts to develop robotaxis, which began in Austin, Texas, could play a crucial role in the company's recovery. Munster expressed that as long as Tesla demonstrates measurable progress in autonomy over the next two years, investors might tolerate flat delivery numbers, indicating a potential shift in focus towards technological advancements rather than just sales figures.
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