Tesla’s Financial Woes Deepen Amid Musk’s Political Ambitions

Tesla faces financial struggles despite CEO Elon Musk’s efforts to shift focus towards its autonomous and robotics future. The company’s shares have fallen 6.8% as investors worry about the impact of Musk’s growing political involvement on the business.

Analysts at Wedbush Securities warn that Tesla is “heading into one of the most important stages of its growth cycle,” but with Musk spending more time on politics, it may divert attention from the company’s key initiatives, such as robotaxis and autonomous driving.

The removal of tax credits for electric vehicles and reduced emissions fines under a new law signed by President Trump will also significantly impact Tesla’s revenue. The company has relied heavily on these credits to post positive annual profits, but without them, it may struggle to maintain its financial stability.

Tesla’s sales have been declining, with global sales down 13% in the first two quarters of this year compared to the same period last year. The lack of demand for electric vehicles is attributed to increased competition from Western and Chinese automakers, which has led to a decline in Tesla’s market share.

The company’s robotaxi service is also facing challenges, with limited expansion plans and significant issues reported during its launch in Austin, Texas. While Musk promises to expand the service soon, investors are concerned that his political activities may continue to distract from the business’s growth potential.

Analysts at William Blair have cut their earnings forecast for Tesla due to these concerns, citing a growing risk of profit decline. The company’s financial outlook has become increasingly uncertain, and investors are urged to focus on Musk’s efforts towards the robotaxi rollout rather than his political endeavors.

Source: https://edition.cnn.com/2025/07/08/business/tesla-troubled-financial-outlook