Quick overview

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Tesla China reported that June sales of electric vehicles increased by 3.7% compared to the same period last year. The US carmaker sold 61,000 EVs in China last month, a 59 percent increase from May.

However, CEO Elon Musk’s right-wing political views and an aging vehicle lineup have turned off some buyers, setting Tesla (TSLA) up for another year of declining sales after the company reported a second consecutive decrease in quarterly deliveries.

 

The automaker must now deliver more than a million vehicles in the usually strong second half to avoid another annual sales drop. However, due to tariff-driven economic uncertainty and the threat of phase-outs of key EV incentives under the Trump administration’s comprehensive tax bill, such as the $7,500 credit on new sales and leases, some analysts say this may be challenging.

Tesla’s electric vehicle sales have plummeted over the past three months as consumers continue to avoid the company due to boycotts linked to Elon Musk’s political beliefs.

The fact that global sales fell 13 percent more than a year ago indicates that Musk’s support for US President Donald Trump and far-right European politicians has hurt Tesla’s brand more severely, extensively, and permanently than some investors expected. According to Tesla’s figures released on Wednesday, the company’s quarterly earnings report, due later this month, could be disappointing as rival electric vehicle manufacturers capitalize on its vulnerabilities and steal market share.

Musk officially left the Trump administration as a cost-cutting czar, raising hopes that sales would rebound. Recent data contradicts Musk’s claim that the company is experiencing a “major rebound” in sales.  Sales of the Models 3 and Y totaled 373,728—more than the 356,000 Wall Street analysts predicted. The news caused a 5% increase in Tesla’s stock price..