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's electric vehicle sales plunged in the second quarter as the company continues to face a backlash from CEO Elon Musk's political turn. Why it matters: EVs are an essential source of cash flow for Tesla as it pursues ambitious projects like self-driving cars and humanoid robots.