Tesla (NASDAQ: TSLA) is facing declining deliveries and consumer backlash after CEO Elon Musk’s foray into politics. A false-advertising lawsuit from California’s DMV could suspend the automaker’s sales in the state for 30 days, impacting third-quarter deliveries in the largest EV market in the U.S.

The lawsuit has escalated with a five-day court hearing this week. Tesla was gearing up for a strong third quarter, offering new discounts and incentives to boost EV sales. If the automaker avoids losing its license in California, these incentives could lead to a more positive quarter for investors.

Investors should watch closely as Tesla navigates this legal battle, as the outcome could significantly impact its financials. A successful quarter could provide a much-needed boost for the company and investors. For those looking for investment opportunities, “Double Down” stock recommendations are available for three companies through Stock Advisor, offering a potentially lucrative second chance to invest.

Read more at Nasdaq: Why Tesla Deliveries Could Hit Yet Another Speed Bump