Elon Musk’s Tesla Suffers a Major Setback, Company’s EV Sales Fall Sharply
Due to declining sales in major markets like the US and China, Tesla is now planning to enter new markets such as India.
Tesla, one of the biggest players in the electric vehicle (EV) market, has suffered a major setback. In the second quarter of this year, the company sold 3,84,122 EV units — a drop of over 13 percent compared to the same period last year. Tesla is facing stiff competition from China’s BYD and other EV manufacturers.
In the US, one of Tesla’s key markets, demand for EVs has declined due to concerns over tariffs and the potential removal of tax credits for electric vehicles. Elon Musk’s criticism of US President Donald Trump’s policies has also impacted the company’s performance. Musk donated more than $270 million to Trump’s campaign during the US election. In recent weeks, his opposition to Trump’s tax and spending proposals has sparked protests against Tesla, further affecting its sales.
After Trump took office, he appointed Musk to head the Department of Government Efficiency. Musk has recently stepped down from this role. Tesla’s share price has also seen a sharp decline in the past few months. Last month, Trump even threatened to cancel government contracts awarded to Musk’s companies. Since the US is a major market for Musk’s ventures, including SpaceX, this could put billions of dollars’ worth of contracts at risk. Tesla, too, could face increasing challenges as a result.
With sales falling in major markets like the US and China, Tesla is now eyeing new markets such as India. The company is expected to start operations in India soon, with its first showroom likely to open in Mumbai. Over the past few months, Tesla has been hiring staff for its Indian operations. The company sees strong potential in India, the world’s third-largest automobile market. Tesla may launch its Model Y first, with plans to import EVs into India during the initial phase.