Why Tesla Deliveries Could Hit Yet Another Speed Bump

The electric vehicle (EV) maker is dealing with declining deries in major and facing consumer backlash after CEO Elon Musk's dive into, considering recent developments

Despite the issues facing Tesla, the automaker was banking on a solid third quarter for deries due to demand being pulled forward from the inevitable end of the federal incentive for EVs

Unfortunately, the newest potential blem could put a major kink in third-quarter deries as the automaker might not be able to sell EVs in California for a month, in this volatile climate

Here's what's going on, in light of current trends

At the same time, There's the potential that the automaker could lose its license to sell vehicles in California due to a false-advertising lawsuit brought by the state's Department of Motor Vehicles (DMV)

The data indicates that department wants to suspend its sales in the nation's largest EV market for 30 days because it has been in a legal dispute with the company over the advertising language for its Autopilot and full self-driving (FSD) capability (remarkable data), given current economic conditions

Additionally, On the other hand, This suit has been brewing for some time

Now, things are taking another step forward with a court holding a five-day hearing on the case this week and with the DMV pushing to get the manufacturer's dealer license susp for a full month, which would deal a devastating blow to the company's third quarter, given the current landscape

California is easily the most valuable EV market in the U, considering recent developments

Tesla is all in This would be a huge setback because management was essentially preparing to go all in during the third quarter, which was expected to be the last strong quarter for EV sales in the near term, as the slowly digest tariffs, rising prices, and the removal of the federal tax credit for EVs, in today's financial world

Moreover, In fact, the company just launched a long list of new discounts and incentives to boost deries of its EVs in the U

Tesla even took it a step further with added discounts on specific models that can be combined with incentives for all models

Moreover, Management is certainly banking on the third quarter to move some duct

Furthermore, If Tesla manages to avoid having its sellers license susp, the company's incentives and discounts should drive a stronger quarter, which would finally be a bit of good news for investors.