Tesla delivered 384,122 vehicles worldwide in the second quarter of 2025 – a decrease of 13 percent compared to the same period last year. Analysts had on average expected 389,000 units. This marks the U.S. electric car maker's second consecutive decline in sales, although a slight recovery is noticeable compared to the weak first quarter when only 336,681 vehicles were sold.
Business is particularly sluggish in Europe: According to data from the European Automobile Manufacturers Association ACEA, Tesla's new registrations in May fell by 28 percent compared to the previous year. In the United Kingdom, the numbers also dropped significantly. At the same time, Chinese competitor BYD increased its deliveries by 42 percent to 606,993 vehicles over the same period.
Analysts point to a combination of structural challenges and self-inflicted problems. In addition to increasing competition from cheaper models by BYD, Renault, and Stellantis, CEO Elon Musk's political positioning is causing irritation. His escapades, most recently the break with former President Trump and the plan to form his own party, are damaging the brand image, according to Andres Sheppard of Cantor Fitzgerald. The US President then openly threatened with subsidy cuts and a "review" of Musk's residency status.
Nevertheless, investors responded cautiously optimistic: Tesla stock rose by 4 percent on Wednesday but is still down about 22 percent since the beginning of the year. Analyst Jed Dorsheimer from William Blair warned: "Any political distraction is a risk – especially now with the rollout of robotaxis imminent.
Tesla recently unveiled a revised version of its best-selling vehicle, the Model Y. The model boosted sales figures in Spain and Norway in June. At the same time, Musk announced the introduction of an autonomous robotaxi service in Austin. Currently, the test operation is still limited and conducted with a Tesla employee in the passenger seat. However, Musk promises 1,000 vehicles "in a few months" and an expansion to metropolises like San Francisco and Los Angeles.
Meanwhile, there are initial signs of stabilization coming from China. In June, the numbers showed a slight recovery in Tesla sales. Wedbush analyst Daniel Ives still sees the company on track: "If Musk focuses on the operational business, Tesla can switch back to growth in the second half of the year.
Whether this trend reversal succeeds will be revealed on July 23 when Tesla releases its full quarterly figures. Until then, it remains open whether vision or volatility will set the pace.
