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The political fallout comes as Tesla sales weaken in Europe, China, and key U.S. markets, even as broader EV demand rises. The dispute adds new uncertainty around Tesla's public image and consumer base,

Tesla’s technical weakness is compounded by deteriorating fundamentals, with global demand continuing to slide. In May, sales in China fell 15% year-over-year and German sales plunged 36%, contributing to an estimated 9% drop in Q2 deliveries to 404,850 units.