Q2 Sales Take a Hit
Tesla delivered 384,122 electric vehicles in the second quarter of 2025 - which is a decline of 13.5% compared to the same quarter last year. While Wall Street had estimated delivery between 380,000 and 390,000, online trackers had expected a low range of 345,000 to 360,000 (Source: Evercore ISI).
Despite the decline, Tesla's share increased by 4.8% to $ 315.06 in pre-market trading.
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| Tesla EV sales drop as Musk faces growing political backlash. |
Breakdown by Model
- Model Y and Model 3: Delivery declined by 11.5%, which is a sign of softening in demand of Tesla's main models.
- Other models (including Cybertruck): This category saw a dramatic decline of 51.8%, which reflects potential production or demand related problems.
Why does this matter
Electric vehicles are the main cash engine of Tesla, which support key initiatives such as:
- Fully autonomous vehicle
- Human resembling robot
- Advanced AI Systems
The decline in sales can affect financing and the progress of these ambitious goals may be slow.
Two Quarters of Decline
This is the second consecutive quarter of declining in year-to-year delivery, which is a worrisome trend for investors and analysts who tracked Tesla's long-term development.
Political Fallout Hitting Demand
This decline corresponds to the political alliance with Donald Trump and the rising public response for their role in the Department of Political Allen Mask. Demolition in Tesla showroom
And the incidents of attacks on vehicles have been revealed, which indicates comprehensive public dissatisfaction.
Musk vs. Trump: The Public Feud
Although both were along with each other, but recently there is a confrontation between Mask and Trump, especially about federal budget priorities.
This crack has added a new layer of controversy which can affect the brand image of Tesla.
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