Tesla CEO Elon Musk has cautioned that the company could encounter "multiple challenging quarters," primarily due to the waning support from the US government for electric vehicle manufacturers. Financial results disclosed on Wednesday revealed that Tesla's quarterly sales experienced their steepest decline in over a decade, with total revenue dipping 12% year-over-year. Even the introduction of the revamped flagship Model Y failed to rejuvenate sales. Furthermore, a steep 51% drop in regulatory credit revenue exacerbated profitability issues. During the earnings call, Musk noted that with the US government scheduled to phase out consumer incentives of up to $7,500 later this year, Tesla must navigate these hurdles before autonomous driving software services commence generating revenue in the latter half of next year. This announcement promptly triggered a nearly 5% decline in Tesla's share price.