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Internally, the much-anticipated Cybertruck has failed to meet sales expectations, and many customers are holding out for upgraded versions of the Model Y, which started deliveries in Norway in March. The Model Y is critical for Tesla; design and production setbacks have hindered its momentum. Notably, the consultancy firm Fox to Move indicates that the Model Y was the best-selling vehicle globally in 2023 and 2024.
The Political Landscape
Beyond the technical and competitive aspects, political factors have also played a significant role in Tesla's current predicament. Elon Musk's alignment with former President Donald Trump has sparked mixed reactions, generating both criticism and support in an increasingly polarized political environment.