Tesla Inc. shares are experiencing a decline amidst disagreements between CEO Elon Musk and President Donald Trump. Additionally, the company’s registrations in Sweden and Denmark have fallen during June, contributing to the downward trend.
Disagreements Between Musk and Trump
The drop in Tesla shares follows Musk’s vocal opposition to Trump’s proposed federal spending bill. Musk has expressed his disapproval on social media, calling the bill a “disgusting abomination” and warning that he would form a new political faction, the “America Party,” if the bill passes. In response, Trump has criticized Musk’s reliance on federal subsidies, suggesting that Tesla’s survival is heavily dependent on government support.
Market Reactions
Investment advisor Ross Gerber has criticized Tesla’s board for staying silent amid Musk’s involvement in political discourse. Wedbush analyst Dan Ives has compared the feud to a “junior high school friendship gone bad,” predicting that the situation will eventually stabilize but acknowledging near-term market discomfort.
Europe Woes Continue
Registration Data
Tesla’s June registration data has shown sharp declines in several European countries, including:
- Sweden: over 60% year-over-year drop
- Denmark: over 60% year-over-year drop
- France: 10% fall
- Italy: 66% plunge
However, the company has seen strength in Norway, where Model Y deliveries have surged 115% from a year earlier, leading to a 54% rise in overall Tesla sales in the region.
Impact of New Model Y
Despite the release of a refreshed Model Y, which began delivering in several European markets in June, analysts have noted that the impact appears insufficient to offset Tesla’s broader slide in Western Europe. According to Schmidt Automotive Research, Tesla has now posted six straight quarters of declining registration volumes in the region, with a potential seventh quarter underway.
Upcoming Earnings Report
Tesla is expected to report second-quarter delivery figures later this week, which could further test investor confidence amid growing uncertainty around Musk’s leadership, product competitiveness, and geopolitical positioning.
TSLA Price Action
Tesla shares were down 4.99% at $301.81 at the time of writing.
What’s Next
As the situation continues to unfold, investors will be closely watching Tesla’s upcoming earnings report and the company’s ability to navigate the challenges ahead. Will Musk’s leadership and vision be enough to drive Tesla forward, or will the current trends continue to impact the company’s stock price? Only time will tell.