Tesla reported 384,122 Q2 deliveries, marking a 13.5% year-over-year decline as macro headwinds, growing competition, and renewed political distractions from Elon Musk weighed on sentiment. Shares fell nearly 8% before recovering slightly, underscoring investor unease.
Deliveries miss forecasts on global softness
Analysts had expected around 394,000 vehicles, making this Tesla’s second straight quarterly miss. Demand cooled in China and Europe, with local players like BYD and Stellantis gaining ground. The lack of a major new model rollout also left order books thinner.
Political gambit shakes investor confidence
The stock’s sharp drop followed Musk’s announcement of his new “America Party,” which sparked debate on whether his political ambitions might detract from Tesla’s operational focus. Brokerages including Wedbush and Morgan Stanley cautioned that governance questions could intensify if distractions grow.
Robotaxi hype tries to offset gloom
Tesla’s pilot robotaxi program in Austin offered a bright spot. Some investors view it as a long-term margin lever that could reignite enthusiasm. However, with no low-cost EV launch imminent, markets remain cautious on volume growth.
Tesla faces a critical stretch: either ramp fresh demand and tighten operational execution, or risk deeper erosion in investor trust as political noise continues to swirl.
