Tesla Braces for Another Delivery Drop as Musk Fallout, Rivals Weigh on Demand

Tesla (TSLA, Financials) is expected to report another dip in vehicle deliveries Wednesday; analysts forecast 394,380 units for the second quarter down 11% from a year ago.

The slide follows a 13% drop in Q1; hopes that a refreshed Model Y would lift demand didn't pan out. It's not such a departure from the old Model Y, said investor Ross Gerber; buyers didn't bite.

Sales in Europe have now fallen five months in a row down nearly 28% in May; in China, Tesla's market share has slipped to 7.6% from 10% last year, and well off its 2020 peak of 15%.

Analysts expect full-year sales to fall 8%; Musk had promised 20%30% growth, then walked that back. To meet even flat growth, Tesla would need to deliver over a million vehicles in the second half a tall order.

Politics aren't helping; Musk's public alignment with far-right figures and his role in U.S. job cuts have turned off some buyers. Others are simply choosing cheaper Chinese EVs with flashier features.

Tesla has rolled out a handful of robotaxis in Austin and is working on a lower-priced Model Y; but delays and competition especially from Xiaomi make the road ahead steeper.