Tesla Global News #33

Tesla is bracing for a tough second quarter, with global vehicle deliveries projected to drop to 395,328 units, an 11% decline from the same period last year, according to Bloomberg consensus estimates.

This marks a continuation of challenges for the electric vehicle (EV) pioneer, which has seen its market dominance erode in key regions. In the U.S., Tesla’s EV registrations fell 16% in April 2025, while competitors like General Motors’ Chevrolet brand reported a staggering 215% surge, driven by models like the Equinox EV and Blazer EV. The intensifying competition underscores a broader shift in the EV landscape, where affordability and diverse offerings are reshaping consumer preferences. In China, the world’s largest EV market, Tesla’s struggles are even more pronounced.

The company’s market share slipped to 7.6% in the first five months of 2025, down from 10% the previous year, as local giants like BYD and newcomers like Xiaomi gain ground with feature-rich, competitively priced models. Xiaomi’s SU7, for instance, has captured attention with its advanced infotainment and sleek design, posing a direct challenge to Tesla’s Model 3 and Model Y. Analysts suggest Tesla may need to implement further price cuts to maintain its foothold, a strategy that could strain margins already under pressure from rising production costs and softening demand.Amid these headwinds, Tesla is pivoting toward innovation to secure its long-term growth. The company is heavily investing in artificial intelligence and autonomous driving technology, with its robotaxi program gaining traction despite recent setbacks in trial phases. Posts on X reflect a mix of optimism and concern, with some users praising Tesla’s vision for a fully autonomous future, while others question its ability to navigate intensifying competition and regulatory scrutiny. As Tesla prepares to release its Q2 delivery figures, the spotlight remains on whether its strategic shift toward AI and self-driving technology can offset the immediate challenges of declining deliveries and market share erosion.

A public clash between Tesla CEO Elon Musk and President Donald Trump has sent ripples through the financial markets, with Tesla’s stock (TSLA) plummeting 7% on Tuesday, July 1, 2025, closing at $300.36, as shown in the finance card above. The dispute erupted over a proposed Republican spending bill that threatens to eliminate electric vehicle (EV) subsidies, a move that could cost Tesla an estimated $1.2 billion in earnings, representing roughly 17% of its 2024 operating income.

This policy shift has heightened investor concerns, especially as Tesla’s stock has already declined 21% year-to-date in 2025, dropping from a high of $404.60 in January to $304.043 as of July 2, 2025. The combination of political headwinds and Tesla’s reliance on subsidies—despite Musk’s public stance against them—has amplified scrutiny of the company’s financial resilience.Elon Musk’s vocal opposition to subsidies has long been a point of contention, given Tesla’s historical benefit from billions in tax credits that have bolstered its growth and consumer affordability. The proposed elimination of these incentives, championed by Trump and Republican lawmakers, could raise the cost of Tesla’s vehicles, potentially dampening demand at a time when the company is already grappling with declining deliveries and intensifying competition. Posts on X reflect a polarized sentiment, with some users criticizing Musk for alienating a key political ally, while others argue that Tesla’s long-term focus on innovation, particularly in AI and autonomous driving, could mitigate the impact of lost subsidies.

However, the immediate market reaction underscores the vulnerability of Tesla’s stock to political and regulatory shifts.The feud also highlights broader challenges for Tesla’s financial outlook. With a market capitalization of approximately $1.1 trillion, as noted in the finance card above, Tesla remains a dominant player but faces mounting pressures from both domestic and global markets. In the U.S., the potential loss of EV tax credits could erode Tesla’s price advantage, while in China, competitors like BYD and Xiaomi are capturing market share with lower-cost, feature-rich models. As Tesla navigates this turbulent period, the Musk-Trump dispute serves as a stark reminder of the interplay between politics, policy, and corporate performance, with investors closely watching how Tesla adapts to a potentially subsidy-free future.

Tesla’s long-awaited robotaxi trials kicked off last week in Austin, Texas, marking a significant milestone in the company’s ambitious push toward fully autonomous driving. The initial rollout, involving just a dozen vehicles equipped with Tesla’s vision-based self-driving technology and overseen by human monitors, represents a cautious step toward realizing CEO Elon Musk’s vision of a driverless future. However, the trials have already drawn scrutiny, with reports of traffic violations, including instances of speeding and improper lane usage, raising questions about the readiness of Tesla’s autonomous systems. These early hiccups have fueled skepticism on platforms like X, where some users have expressed concerns about the technology’s reliability, while others remain enthusiastic about its potential to revolutionize transportation.U.S. regulators, including the National Highway Traffic Safety Administration (NHTSA), are closely monitoring Tesla’s self-driving technology, with a particular focus on its performance in adverse weather conditions such as rain, fog, or snow.

The scrutiny comes amid broader investigations into Tesla’s Full Self-Driving (FSD) system, which has faced criticism for inconsistent performance in complex driving scenarios. Despite these challenges, Tesla’s robotaxi trials have sparked optimism among supporters, with posts on X highlighting the company’s vision-based approach—relying solely on cameras and AI rather than expensive lidar systems—as a potential game-changer. Speculation about expanding the trials to Asia, particularly in tech-forward markets like China, has further fueled excitement, though regulatory hurdles and local competition pose significant obstacles.The robotaxi trials underscore Tesla’s broader strategic shift toward artificial intelligence and autonomy as key pillars of its future growth.

With global EV deliveries projected to decline 11% in Q2 2025 and competitive pressures mounting, the success of Tesla’s autonomous driving initiatives could be critical to maintaining its market leadership. However, the path forward is fraught with challenges, including technical refinements, regulatory approvals, and public perception. As Tesla navigates these hurdles, the Austin trials serve as both a proof of concept and a litmus test for the company’s ability to deliver on its bold promises, with investors and enthusiasts alike watching closely for signs of progress or further setbacks.

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