Wall Street is reining in expectations for Tesla Inc. deliveries as the Elon Musk-run automaker struggles with waning consumer demand and the threat of reduced US federal incentives for electric vehicles.

Tesla's new car sales in Spain and Portugal fell in May from the same month in 2024, registration data released by industry groups in both countries showed on Monday, while sales of electric cars from other brands soared.

Transportation Secretary Sean Duffy recently said wants a national standard for self driving cars, but one doesn’t exist yet.

Elon Musk had advocated ending the $7,500 tax credit for buyers of Tesla and other automakers’ EVs. But with the end of that credit included in the the “big, beautiful bill,” he and the now financially struggling Tesla are arguing for its continuation.

Electric vehicles are expected to take a hit under the existing reconciliation budget proposal, but that isn’t the only provision that would seemingly hurt Elon Musk and his business if passed as written.

"Elon is upset because we took the EV mandate ... which was a lot of money for electric vehicles," Trump said Thursday in the Oval Office. "They're having a hard time, the electric vehicles. And they want us to pay billions of dollars in subsidy. And, you know, Elon knew this from the beginning."