Tesla reported a 14 percent decline in electric vehicle deliveries for the second quarter, continuing a trend that began last year, as the company shifts its focus away from new car models and instead emphasises autonomous driving.

The company said it delivered 384,000 vehicles during the April to June quarter, down from 444,000 in the same quarter a year earlier, as it faces increasing competition from market leader BYD and established players such as General Motors, Volkswagen and BMW.

The figure was the largest year-on-year drop in Tesla’s history, but represented a 14.1 percent increase on deliveries from the first quarter.

Political controversy

Telsa’s shares rose following the news, as investors had expected a decline in sales. The company’s shares are down around 17 percent so far this year.

Earlier figures from the European Automobile Manufacturers’ Association found deliveries in the UK and continental Europe fell 28 percent in May, while research firm Cox Automotive estimated that US Tesla sales fell 21 percent in the second quarter.

The company’s EV sales have suffered in part because of the involvement of chief executive Elon Musk in controversial politics in the US and overseas, alienating many consumers.

Musk participated in an ad-hoc body known as the Department of Government Efficiency earlier this year, but recently left and has launched a tirade against a White House-backed spending bill that cuts federal support for products Tesla manufactures such as EVs, solar panels and batteries.

At the same time Tesla has shifted its focus away from its original vision around electric vehicles, with Musk instead touting autonomous driving and humanoid robots as the company’s future.

Tesla launched trials of a “robotaxi” service in Austin, Texas last month with a hand-picked passenger base consisting of Tesla fans who mostly have large social media followings.

Autonomous driving

Some analysts have continued to promote a bullish vision for Tesla’s prospects, with some optimistic about autonomous driving and others saying sales could pick up later this year.

Deepwater Asset Management’s Gene Munster wrote on social media that he expects a 10 percent drop in deliveries for the quarter ending in September and flat deliveries for the December quarter.

But he said he thinks investors will be fine with flat deliveries over the next two years “as long as autonomy shows measurable progress”.

Dan Ives, an analyst with Wedbush Securities, on the other hand said he expected an “accelerated growth path” now that Musk is more focused on the company, with deliveries ramping up in the second half of this year following the introduction of a new Model Y.