Tesla announced a 14 percent year-over-year (YoY) drop in vehicle deliveries for the April-June 2025 quarter, totalling 384,122 electric vehicles. This marks the second consecutive quarter of declining YoY sales for the company.
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While Tesla produced 410,244 vehicles in Q2 2025, a number very close to the 410,831 produced in the same period last year, deliveries significantly lagged production. In Q2 2024, the company delivered more vehicles than it produced, but this quarter saw deliveries plummet by nearly 60,000 YoY.
This downturn isn’t new; Tesla experienced its first annual delivery dip in 2024. The first quarter of 2025 also saw a 13 percent YoY decline, with 336,681 deliveries.
Reports over recent months have consistently indicated falling Tesla sales across various markets. Amidst these declining figures, CEO Elon Musk reportedly fired Omead Afshar, Tesla’s head of manufacturing and operations, last week.
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Several factors appear to be contributing to Tesla’s struggles:
- Increased Competition: Tesla is facing tougher competition, especially from Chinese manufacturers offering more affordable EV models. This comes as Tesla increasingly focuses on autonomous driving initiatives like Robotaxi.
- The “Musk Factor”: Historically, much of Tesla’s success has been tied to Elon Musk’s public persona. However, he has faced significant backlash in recent years. His prominent role as a financial backer and advisor to President Donald Trump during the 2024 election campaign, followed by his brief tenure as head of the administration’s Department of Government Efficiency, drew considerable criticism. Musk formally left his government role in May.
- Political Tensions: In recent weeks, Musk has become an ardent critic of the Trump administration’s major tax and spending bill. This proposed legislation, which passed the Senate and awaits another House vote, includes provisions that could negatively impact Musk’s businesses, such as removing incentives for EV purchases. The ongoing spat between Musk and Trump has even led to threats from Trump to terminate government contracts with Musk’s companies.
