Despite the decline, Tesla’s share price rose in early trading, signalling that investors remain focused on the company’s future in driverless vehicle technology rather than its current sales performance.

The company has devoted resources to autonomous driving rather than developing new models to attract car buyers.

Tesla is headed for another year of shrinking sales after it posted a second straight drop in quarterly deliveries, dragged down by CEO Elon Musk's right-wing political stances and an aging vehicle line-up that has turned off some buyers.