The company has devoted resources to autonomous driving rather than developing new models to attract car buyers.

But once again, Musk has bigger issues at Tesla that came to a head July 2. Tesla had a rough start to the year as Musk's political outspokenness has turned off many potential buyers. After record sales in Q4 2024, the company has now reported two straight quarters of falling sales.

Tesla is headed for another year of shrinking sales after it posted a second straight drop in quarterly deliveries, dragged down by CEO Elon Musk's right-wing political stances and an aging vehicle line-up that has turned off some buyers.