#TrumpVsMusk

Here's a concise overview of Tesla's recent sales and market developments, based on the latest reports:

### 📉 **Sales Performance & Market Challenges**

- **European Decline**: Tesla's sales fell for the fifth straight month in key European markets (May 2025):

- Germany: -36.2% YoY (1,210 units), while BYD sales surged ninefold .

- UK: -45% YoY, dropping to fifth place in EV sales .

- Italy: -20% YoY despite overall EV market growth .

Tesla attributes this partly to factory retooling for the refreshed Model Y, with rebound expected in June .

- **Political Backlash**: Musk's alignment with Trump and subsequent feud (triggering a 14% stock drop) alienated customers, worsening sales in Europe and China .

### ⚡️ **Stock & Valuation Impact**

- **$152B Market Cap Loss** (June 5, 2025): Shares plummeted 14% after Trump threatened to terminate Tesla's government contracts and subsidies .

- **Year-to-Date Struggle**: Shares down ~30% in 2025, driven by weak sales, political controversies, and botched leadership transitions .

### 🤖 **Strategic Shifts & Future Bets**

- **Robotaxi Launch**: Targeting June 12 debut in Austin, Texas, with 10 initial vehicles. Success is critical as Musk pivots focus from affordable EVs to autonomy .

- **Regulatory Risks**: NHTSA is investigating Tesla's Full Self-Driving (FSD) software, and Trump's proposed bill could end $7,500 EV credits, potentially costing Tesla $1.2B in annual profits .

- **Battery Recycling Expansion**: New facility in South Australia aims to recycle materials for ~21,000 Model Ys quarterly, emphasizing vertical integration .

### 💎 **Outlook**

Tesla's near-term recovery hinges on the Model Y refresh boosting European sales, robotaxi success, and mitigating political fallout. However, competition (especially from Chinese EV makers) and regulatory pressures remain significant headwinds .

For further details, refer to the [CNBC](https://www.cnbc.com/2025/06/05/tesla-shares-musk-trump.html) and [Reuters]