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Tesla reported another record drop in sales on Wednesday. The brand’s image remains under pressure due to CEO Elon Musk’s political activities and increased competition.
The company sold 384,122 cars in the second quarter, nearly 60,000 vehicles fewer than a year earlier, a decline of 13.5 percent. This is the largest year-on-year drop in Tesla’s history. However, compared to the first quarter, there was also a 14.1 percent increase.
Musk’s political activities—especially his role within the Trump administration—have led to protests at Tesla showrooms in the US and Europe, as well as vandalism against vehicles and charging stations. Although Tesla does not release regional figures, data show sharp declines in both the United States and Europe.
Recently, it became known that Musk has fired Omead Afshar, his former chief of staff who was responsible for overseeing Tesla’s operations in North America and Europe.
At the same time, competition in the EV market is increasing, with established Western carmakers and Chinese rivals gaining market share. Especially in China, Tesla is facing fierce competition, which is affecting sales in the world’s largest EV market.
Notably, the Chinese brand BYD is on track to overtake Tesla as the largest EV manufacturer on an annual basis. In the first half of this year, BYD sold 1 million electric vehicles, compared to about 721,000 for Tesla.
Tesla shares were already under pressure on Tuesday after President Donald Trump posted on his platform Truth Social that the federal government should investigate the subsidies received by Elon Musk’s companies.
Trump even hinted at the deportation of Tesla boss Elon Musk, who was born in South Africa: ‘No more rocket launches, satellites or electric car production and our country would save a fortune,’ Trump wrote on his platform Truth Social.
Musk, who is also an American citizen, has been increasingly vocal in his criticism of Trump’s tax and budget plans. The new government proposals would end a consumer credit for the purchase of electric vehicles.
The frustration has reached such a level that Musk wants to start a new political party. ‘If this insane budget bill passes, the America Party will be founded the next day,’ Musk wrote on his social media platform X. ‘It’s clear we live in a one-party state—the Porky Pig Party! Time for a new political party that actually cares about the people.’
© The Content Exchange, source News
