(Reuters)-Tesla is expected to release another drop in quarterly deliveries on Wednesday, as the reaction against the political opinions of the ELON Musk president and competition pressures continue to damage demand.
Although part of Tesla’s $ one trillion assessment depends on Musk’s bet on the commercialization of the Taxi robots, most of the company’s current revenue and profits come from its electric vehicle sales business, which has been under pressure due to high interest rates and increased competition.
The global electric vehicle market has grown, although at a slower pace than in previous years, but the annual sales of the old Tesla line fell first in 2024. Although Musk said sales will grow back in 2025, which represents a setback of their previous growth promise of 20 to 30%, analysts expect an 8% drop in sales this year.
For the second quarter ended in June, Tesla is expected to deliver 394,380 units, according to 23 analysts consulted by Visible Alpha. This would represent a drop of more than 11% over the previous year and follow a 13% decline reported by the company in the previous quarter.
Tesla said the drop in the last quarter was due to a production break to move to an updated version of her Model Y, and analysts said many customers were postponing shopping while waiting for the release.
In addition, some potential buyers were annoyed that Musk publicly embraced the far right policy in Europe and worked for US President Donald Trump, supervising cuts in federal jobs and financing.
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Although Musk has changed its focus to their companies, the reaction, along with customers who chose cheaper Chinese electric vehicles, led to the fifth consecutive month of falling Tesla sales in Europe, with a 27.9% drop in May, according to data from the European Association of Automobile Manufacturers.
