Tesla Has a Problem — and It’s Not Just Elon Musk Backlash
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Tesla has offered low-interest loans and other incentives to try to revive sales, but these efforts have depressed the company’s profits. Tesla’s newest model, the Cybertruck pickup, has been a flop. The company sold 4,300 Cybertrucks in the second quarter, according to Cox Automotive, a 50 percent decline from a year earlier.
"Tesla cannot afford a misstep with the robotaxi service," said Camelthorn Investments adviser Shawn Campbell, who owns Tesla shares. He added that "the wheels are coming off" its automotive business, with sales declines across "almost every market."
Tesla said on Wednesday it has built initial versions of an affordable car, a move likely meant to stem the steep decline in sales the company has experienced in markets across the world.
The company reported the steepest decline in quarterly revenue in more than a decade, with a 12% fall, as it battles strong competition from cheaper electric vehicles and a backlash against CEO Elon Musk’s political views.
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The Texas-based EV manufacturer could be subject to punishment for its advertising practices in the Golden State.
A total of 41,138 Teslas were registered in the state last quarter, a 21% drop year over year for the company’s seventh straight quarterly decline, the California New Car Dealers Association said Tuesday. Tesla’s tumble exceeded the 13% dip in total zero-emission vehicle registrations in the state during the same period.
Sales for the company are down all over the world, despite its recent introduction to new markets, like India. Now, as Tesla struggles to keep its head above water, another significant revenue stream is about to run dry,
The CPUC confirmed Friday that Tesla has not applied for the necessary authorization to operate autonomous vehicles for public passenger service-paid or unpaid-in the state. The clarification comes in direct response to reports that Tesla planned to launch its robotaxi service in the Bay Area as early as this weekend.