Tesla’s Struggles Deepen
Tesla’s struggles have deepened as the latest production and deliveries showed a larger fall than expected. From April to June of this year, a total of 384,122 Teslas were delivered, a decline of 13.5% in the same period of the previous year and in the second quarter of sacking production.
Disappointing Delivery Numbers
Wall Street analysts had expected Tesla to report around 1,000 further deliveries. This decline is bad news for the managing director of Tesla, Elon Musk, in a week of attacks on him personally and his companies.
Political Tensions
Mr. Musk was on the wrong side of President Donald Trump and the majority of US Congressmen in his opposition against the so-called large law approved by the US Senate. His criticism of the inevitable debt increases that the law will lead to prompted Mr. Trump to threaten the subsidies for Mr. Musk’s numerous companies.
Impact on Musk’s Businesses
His role as the founder and managing director of numerous companies made him the richest man in the world. In addition to Tesla, Mr. Musk founded the space technology company SpaceX and Starlink. He also acquired the social media company Twitter, which he rebranded as X.
Poor Performance and Protests
It was the poor performance of Tesla that pushed him out of full-time policy and back into the Tesla offices. After months of stock price and protests in Tesla showrooms, sales drops and car defacements, Musk opened his work with the Department of Government Efficiency of the Trump administration.
Analysts’ Reactions
Not everyone regarded the figures as negative. Analysts of the financial services company Wedbus said: "The future of Tesla is in many ways the brightest that it has ever been autonomous in our opinion, FSD [full self-driving] robotics and many other technological innovations on the horizon, with 90% of the evaluation being driven by autonomous and robotics in the coming years, but Musk has to concentrate on doing Tesla and not using his political views first."
Stock Price and Financial Details
After a share price drop of 5% at the beginning of this week, when Mr. Musk went back to political affairs, the Tesla share rose by 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 $409 million of $1.39 billion. The income was also significantly below the forecasts and fell by 9% to $19.3 billion.
