Musk Returns To Tesla Amid Mounting Challenges

Tesla investors have been on a roller coaster. After initially backing President Trump’s candidacy, Elon Musk briefly joined the Trump administration as an advisor on government downsizing—a role that ended in controversy.

Tesla’s 384,000 second-quarter deliveries marked the steepest percentage decline in its history. I Photo: Elon Musk X

Now, having fallen out with Trump, Musk is threatening to launch a new political party, Al Root, Bill Alpert, and Janet H. Cho reported for Barron’s Daily.

Meanwhile, Musk is also trying to reverse Tesla’s sagging sales.

The company sold 721,000 vehicles in the first half of 2025—a 13% drop from the same period last year. Analysts believe Musk’s political posturing may be alienating Tesla’s core customer base.

Tesla’s 384,000 second-quarter deliveries marked the steepest percentage decline in its history.

According to FactSet, Wall Street expects second-quarter earnings of about $0.40 per share, down from $0.52 a year ago, and revenues of $22.4 billion, down from $25.5 billion.

Morgan Stanley’s Adam Jonas forecasts second-half deliveries to remain 13% lower year-over-year, underscoring the importance of Tesla’s long-promised robo-taxis and humanoid robots, known as Optimus.

Robo-taxi testing is underway in Austin, Texas, while Optimus is expected to go on sale next year.

Investors are also waiting for updates on a more affordable Tesla model—another potential game-changer for the embattled EV giant.