Tesla(US:TSLA) Forbes·2025-07-01 19:25Core Viewpoint - Elon Musk's criticism of President Trump's budget bill, which significantly increases the federal deficit, poses potential risks for Tesla, especially as the company faces declining electric vehicle sales and the loss of federal incentives [1][2][6]. Group 1: Financial Impact on Tesla - Tesla is expected to report a significant drop in electric vehicle deliveries, with estimates around 380,000 units for the second quarter, representing a 14% decline year-over-year, while some analysts predict a sharper drop to about 355,000 units, a 20% decrease [4][5]. - The elimination of $7,500 tax credits for EV buyers, likely to phase out in September, will adversely affect Tesla's sales, alongside the end of government support for a national EV charging network [2][4]. - For the full year, Tesla's vehicle sales are now expected to be around 1.6 million, down nearly 10% from 2024 [5]. Group 2: Regulatory and Political Environment - Musk's companies have received at least $30 billion in public support since 2010, making them highly reliant on federal assistance, particularly Tesla, which could face stricter regulations on autonomous vehicles and robotaxis [2][6]. - The political landscape is tense, with Musk's recent clashes with Trump potentially leading to increased scrutiny on Tesla from government agencies, including investigations into Tesla's Autopilot and Full Self-Driving features [8][9]. - Trump's comments suggest that Musk's loss of EV mandates could lead to further repercussions for Tesla, indicating a volatile relationship between the company and the current administration [9].