Tesla Sales Keep Falling As Its Stock Keeps Rising – Jalopnik

Happy Thursday! It’s July 3, 2025, and that is The Morning Shift — your each day roundup of the highest automotive headlines from world wide, in a single place. This is the place you will discover crucial tales which can be shaping the best way Americans drive and get round.

In this morning’s version, we’re wanting on the divergence between Tesla’s gross sales and share value, 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 nasty spot. President Trump’s huge funds invoice will reduce the $7,500 EV incentive that has made eco-friendly automobiles viable within the United States, and who is aware of what occurs to the corporate’s emissions credit enterprise when CAFE will get gutted. Sales are down, prospects are dim, and the share value is… up? What? From Reuters:

Tesla is headed for one more yr 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 car line-up that has turned off some patrons.

…

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.

Still, shares, down a couple of quarter this yr, 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 market, the place its refreshed Model Y has gained some traction.

As of this writing, Tesla inventory is down as we speak, this week, this month, and this yr. It’s oddly flat throughout that point, although, for a enterprise that is turning into an increasing number of basically unsustainable by the day. It’s nearly as if Tesla is a meme inventory, only a manner for bizarre nerds to donate their cash to Elon Musk’s pet challenge of securing a future for some very particular kids. 

Trump’s “reciprocal” tariffs are coming again subsequent week, and nations world wide are uneasy. Will they honestly 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? No one is aware of, however everybody’s scrambling anyway. From Automotive News:

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 finish of the tariff pause might have vital ramifications for the auto trade, regardless that it applies solely to the reciprocal tariffs Trump introduced in April and to not the sectoral levies he positioned on autos, elements, metal and aluminum. The auto and metals tariffs have been main matters of dialogue in negotiations between the U.S. and lots of of its buying and selling companions, and broad commerce offers with these international locations might 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 damage a minimum of one firm, although: Homegrown automaker Rivian. The firm is now spending extra on supplies to construct its vehicles, whereas patrons 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 autos takes successful from stiff competitors and tariff-driven financial uncertainty, sending its shares greater than 2% decrease.

Trade 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.

High rates of interest are additionally holding again some patrons, 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. This is precisely the kind of firm that you just’d anticipate Trump to help, however the automaker is struggling underneath the administration’s insurance policies. Who might have ever forseen this?

The National Highway Traffic Safety Administration is opening one other investigation, proper after it started wanting into 92,000 Range Rover Sports. Now, it is each single Dodge Dart ever constructed — practically 300,000 automobiles. From Automotive News:

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 car won’t utterly change gears, together with into park, inflicting the car to doubtlessly transfer in sudden methods, NHTSA mentioned.

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

The combating towards Iran would possibly really feel prefer it’s reached a brand new stage lately, however keep in mind again to just some a long time in the past when the United States killed 290 folks on a industrial flight from Tehran to Dubai. A bit of excerpt from the History.com article:

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

We’ve all the time been like this.

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