Tesla's Slumping Sales Add Pressure After Musk's Public Clash With Trump
Tesla CEO Elon Musk is once again making headlines after engaging in a high-profile social media dispute with former President Donald Trump. The spat, which unfolded on X (formerly Twitter) this week, comes at a particularly challenging time for Tesla, as the electric vehicle (EV) manufacturer's U.S. sales have continued their downward trend into the second quarter of 2025.
Musk and Trump: A New Flashpoint
The latest confrontation began after Trump criticized Musk’s recent push for autonomous driving technology, calling it “reckless” and “out of touch with American workers.” Musk fired back, defending Tesla’s innovation and accusing Trump of “fearmongering” and “politicizing technology.” The exchange quickly went viral, trending across social media platforms and drawing commentary from politicians, industry analysts, and consumers alike.
Tesla Faces Mounting Sales Challenges
Even before the latest war of words, Tesla has been under mounting pressure. According to the company’s June 30 earnings report, Tesla’s U.S. vehicle deliveries fell 12% year-over-year in the second quarter—its third consecutive quarterly decline. Analysts attribute the slump to intensified EV competition from both American and international automakers, as well as persistent concerns about high interest rates and waning consumer demand.
- Increased EV competition: Ford, General Motors, and several Chinese automakers have ramped up their U.S. EV offerings in 2025, offering lower-priced models and improved charging infrastructure.
- Interest rate impact: Elevated borrowing costs continue to dampen large-ticket consumer purchases, including electric vehicles.
- Brand perception: Musk’s polarizing public persona and social media activity are cited by some analysts as contributing to a decline in Tesla’s brand favorability among key demographics.
Wall Street Reacts to Public Spat
Investors were quick to react to the Musk-Trump exchange. Tesla’s stock dipped nearly 4% in after-hours trading on July 1, reflecting growing anxiety over the company’s leadership and its ability to navigate political headwinds. Market strategists warn that high-profile disputes could further erode consumer trust and complicate Tesla’s efforts to regain market share.
What’s Next for Tesla and Musk?
As Tesla prepares for its highly anticipated Cybertruck expansion and continues to invest in full self-driving technology, the company faces unprecedented scrutiny. Musk’s ongoing public battles—both political and corporate—are likely to remain in the spotlight as the EV industry evolves and the U.S. presidential campaign season intensifies.
While Tesla remains a dominant force in the global EV market, the convergence of declining sales, heightened competition, and public controversies could shape the company’s trajectory in the months ahead. Industry observers will be watching closely to see whether Musk’s bold approach helps or hinders Tesla’s recovery as 2025 progresses.
