Tesla Gross sales Maintain Falling As Its Inventory Retains Rising

Glad Thursday! It is July 3, 2025, and that is The Morning Shift — your day by day roundup of the highest automotive headlines from around the globe, in a single place. That is the place you will discover an important tales which might be shaping the way in which People drive and get round.

On this morning’s version, we’re trying on the divergence between Tesla’s gross sales and share worth, in addition to gazing down the barrel on the return of “reciprocal tariffs.” We’ll additionally check out how tariffs have already hit Rivian, and NHTSA’s newest investigation.

Tesla’s in a foul spot. President Trump’s huge price range invoice will minimize the $7,500 EV incentive that has made eco-friendly automobiles viable in the US, and who is aware of what occurs to the corporate’s emissions credit enterprise when CAFE will get gutted. Gross sales are down, prospects are dim, and the share worth is… up? What? From Reuters:

Tesla is headed for an additional 12 months of shrinking gross sales after it posted a second straight drop in quarterly deliveries, dragged down by CEO Elon Musk’s right-wing political stances and an ageing automobile line-up that has turned off some consumers.

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It reported on Wednesday that deliveries fell 13.5% within the second quarter, lacking analysts’ expectations even after Musk mentioned in April that gross sales had turned a nook.

Nonetheless, shares, down a couple of quarter this 12 months, rose 4.5% because the drop was much less extreme than the bleakest analysts views, partly helped by a modest demand restoration within the aggressive Chinese language market, the place its refreshed Mannequin Y has gained some traction.

As of this writing, Tesla inventory is down as we speak, this week, this month, and this 12 months. It is oddly flat throughout that point, although, for a enterprise that is changing into increasingly more basically unsustainable by the day. It is virtually as if Tesla is a meme inventory, only a means for bizarre nerds to donate their cash to Elon Musk’s pet undertaking of securing a future for some very particular youngsters. 

Trump’s “reciprocal” tariffs are coming again subsequent week, and nations around the globe are uneasy. Will they really return, or will they be delayed once more? Can different international locations make offers in time to stave off the worst results? Will these offers even be honored? Nobody is aware of, however everybody’s scrambling anyway. From Automotive Information:

A pivotal week on international commerce looms as President Donald Trump’s 90-day pause on reciprocal tariffs is scheduled to finish on July 9.

The tip of the tariff pause may have vital ramifications for the auto business, though it applies solely to the reciprocal tariffs Trump introduced in April and to not the sectoral levies he positioned on automobiles, elements, metal and aluminum. The auto and metals tariffs have been main subjects of debate in negotiations between the U.S. and plenty of of its buying and selling companions, and broad commerce offers with these international locations may embrace changes to these duties.

The U.S. has reached some offers with different nations, however the Trump administration appears to run on whims — simply take a look at the will-they-won’t-they that we have been taking part in with Canada. Nothing’s predictable any extra. 

Trump’s tariffs have harm at the very least one firm, although: Homegrown automaker Rivian. The corporate is now spending extra on supplies to construct its vehicles, whereas consumers have much less of their pockets to spend on high-dollar EVs. From Reuters:

Rivian Automotive reported a pointy fall in second-quarter deliveries on Wednesday, as demand for its electrical automobiles takes successful from stiff competitors and tariff-driven financial uncertainty, sending its shares greater than 2% decrease.

Commerce tariffs imposed by U.S. President Donald Trump have led to a surge in manufacturing prices for the sector, with carmakers scrambling to reorganize provide chains to mitigate the hit to their companies.

Excessive rates of interest are additionally holding again some consumers, whereas many are choosing cheaper hybrid- and gasoline-powered automobiles.

Rivian makes among the finest EV vehicles available on the market proper now, and the corporate makes them in America. That is precisely the kind of firm that you just’d count on Trump to assist, however the automaker is struggling beneath the administration’s insurance policies. Who may have ever forseen this?

The Nationwide Freeway Visitors Security Administration is opening one other investigation, proper after it started trying into 92,000 Vary Rover Sports activities. Now, it is each single Dodge Dart ever constructed — practically 300,000 automobiles. From Automotive Information:

NHTSA opened an investigation June 30 into all 299,000 2013-16 Dodge Darts for alleged shifter cable bushing failures after complaints following a earlier recall.

If the shift cable turns into indifferent from the transmission, the automobile won’t utterly change gears, together with into park, inflicting the automobile to probably transfer in sudden methods, NHTSA mentioned.

This investigation comes after an identical recall again in 2019, for shifter points in earlier Darts, however the brand new NHTSA look expands the difficulty to each Dart. Fortunately, it looks as if a comparatively easy repair if it seems to be a really widespread downside. 

The preventing in opposition to Iran would possibly really feel prefer it’s reached a brand new stage just lately, however keep in mind again to just some a long time in the past when the US killed 290 individuals on a business flight from Tehran to Dubai. Somewhat excerpt from the Historical past.com article:

Iran known as the downing of the plane a “barbaric bloodbath,” however U.S. officers defended the motion, claiming that the plane was outdoors the business jet flight hall, flying at solely 7,800 ft, and was on a descent towards the Vincennes. Nonetheless, one month later, U.S. authorities acknowledged that the airbus was within the business flight hall, flying at 12,000 ft, and never descending.

We have at all times been like this.

Glad lengthy weekend eve, everybody. Let’s get the following three days kicked off proper.