Tesla experiences decrease in global sales due to backlash against Musk and challenges in electric vehicle market.

ieve Tesla is on a path to an accelerated growth path over the coming years with deliveries expected to ramp in the back-half of 2025 following the Model Y refresh cycle,” Dan Ives, analyst at Wedbush Securities, said in a note to Al Jazeera.
Musk has acknowledged that his work as head of the Department of Government Efficiency and his embrace of European far-right candidates have hurt the company. But he attributed much of the sales plunge to customers holding off while they waited for new versions of Tesla’s best-selling Model Y, and recently predicted a major turnaround in sales.
The company is focusing more on robots, self-driving technology and robotaxis ferrying passengers around without anyone behind the wheel. Its test run of robotaxis in Austin, Texas, seems to have gone smoothly for the most part. But it has also drawn the scrutiny of federal car safety regulators because of a few mishaps, including one case in which a Tesla cab was shown on a widely shared video heading down an opposing lane.
On Wednesday, Tesla stock was trending upwards at 11 am in New York (15:00 GMT) and was up 4.73 percent for the day, however, it is down 3.02 percent over the last five days.

In recent figures released by Tesla, a decline in global auto sales has been noted, contributing to a tough period for the electric vehicle (EV) maker amidst growing competition in the market and controversies surrounding CEO Elon Musk. The second quarter saw a 13.5 percent drop in deliveries compared to the previous year, amounting to 384,122 sales. This decline mirrors the increasingly competitive landscape of the EV industry, where Tesla’s once unchallenged position is now facing rivals from China and traditional Western automakers like General Motors, Toyota, and Volkswagen.

The popularity of EVs has taken a hit due to uncertainties regarding tariffs and the impending expiration of EV tax credits in the United States. This downturn is evident in the sales performance of other carmakers as Volvo and Rivian also reported decreases in their sales figures for fully electric vehicles in June, with drops of 26 percent and 22.7 percent, respectively. The decline in sales for these companies indicates a broader trend affecting the EV market.

Elon Musk’s involvement in political activities, particularly his support for right-wing politicians, has further exacerbated Tesla’s challenges. Musk’s donations to President Donald Trump’s 2024 campaign and subsequent criticisms of government policies have led to calls for investigations into subsidies provided to Musk’s companies, causing Tesla’s stock to plummet by 5.3 percent. Despite these controversies, analysts predict a positive outlook for Tesla, citing increased production of popular models like the Model Y and Model 3 as potential drivers for growth in the future.

Amidst these challenges, Tesla continues to focus on innovation, with a particular emphasis on robotics, self-driving technology, and the development of robotaxis for autonomous transportation services. While these initiatives have shown promise, they have also raised concerns among regulators regarding safety issues. Despite these hurdles, Tesla’s stock saw a modest increase in value on Wednesday, hinting at potential recovery in the days ahead.