By Chris Kirkham, Akash Sriram and Abhirup Roy LOS ANGELES (Reuters) -Tesla and its CEO Elon Musk are walking an increasingly difficult tightrope as the company navigates declining electric vehicle sales and an autonomous driving business that has yet to get off the ground.

Tesla has offered low-interest loans and other incentives to try to revive sales, but these efforts have depressed the company’s profits. Tesla’s newest model, the Cybertruck pickup, has been a flop. The company sold 4,300 Cybertrucks in the second quarter, according to Cox Automotive, a 50 percent decline from a year earlier.

Tesla's market cap fell below $1 trillion, but it still reflects investors' assumptions of enormous future growth.

Tesla saw a 17% growth in its services business, but it was not enough to close the gap in falling EV sales, fewer regulatory credits, and a decline in solar and energy storage sales.

A key driver of Tesla's profit is disappearing fast as the U.S. government changes policies on an environmental asset known as regulatory credits.

Two Tesla Inc (NASDAQ:TSLA) board of directors members have sold nearly $200 million in stock ahead of the company's highly anticipated robotaxi launch in Texas. These sales add to a history of board members cashing out and could be

The EV manufacturer faces slowing sales, political backlash and mounting competition as Elon Musk refocuses on the company's future

Tesla is facing a rough path ahead and will likely struggle unless Elon Musk fixes his public image, longtime investor Ross Gerber says.