Chipmakers get larger tax credits in Trump's latest 'big beautiful bill' Tesla faces an onslaught of competition, especially from Chinese EV makers that sell newer and more affordable models. In the first quarter, Tesla partly blamed its declining automotive sales on customers who had delayed their orders so they could get a refreshed version of the Model Y SUV, which began shipping in March. There's also a political backlash against CEO Elon Musk, with waves of protests against Tesla weighing on the company's reputation and impacting sales. Musk was President Donald Trump's biggest financial backer in last year's election, and endorsed Germany's far-right, anti-immigrant party AfD. He led the Trump administration's Department of Government Efficiency (DOGE) initiative to slash the size and capacity of federal agencies, including regulators tasked with oversight of his companies. Musk's formal role with DOGE ended in May. His relationship with Trump quickly began to sour and, over the weekend, Musk reignited the feud, slamming the multitrillion-dollar tax-and-spending package backed by the president, and calling for the creation of a third political party. Certain aspects of the bill could harm Tesla's solar and battery business, and would likely lower EV sales by roughly 100,000 vehicles per year by 2035, according to think tank Energy Innovation. Meanwhile, Trump has threatened to potentially end other subsidies that benefit Musk's businesses, including Tesla and the aerospace and defense company SpaceX. He even threatened to deport Musk, a naturalized, U.S. citizen. Also in Wednesday's announcement, Tesla reported 10,394 deliveries of its other models during the second quarter, including its steel Cybertruck. The angular pickup has been recalled eight times for a variety of hardware and software issues since Tesla began shipping it in November 2023. The company also reported that it had produced 410,244 vehicles during the three months ending in June, including 396,835 of its most popular, and lower-priced, Model Y SUVs and Model 3 sedans. Shares of Tesla fell more than 5% on Tuesday to close at $300.71 and were down about 26% for the year, the worst performance among tech's megacap companies. The move put the company's market cap below $1 trillion. The company will discuss financial results for the second quarter with investors on Wednesday, July 23, 2025 after markets close.