Tesla sales drop again, indicating ongoing struggles

Tesla deliveries fell for a second straight quarter. The EV maker dispatched 384,122 vehicles globally in Q2 of this year, a 13.5% decline from the same period in 2024.

Although the number marked a slight improvement over Q1, the company remains at risk of recording a second consecutive year of declining sales unless it sells more than one million vehicles in the second half of this year.

The Q2 unfolded without major factory retooling, unlike the production halt for the upgraded Model Y in the first quarter.

Still, Tesla reportedly paused operations on the Model Y and Cybertruck lines briefly in May. The company will reveal its financials on July 23.

Growing competition
China’s BYD is giving Tesla a run for its money with its affordable electric vehicles. Stellantis and Renault are also posing a challenge for America’s largest EV-maker.

Apart from competition, CEO Elon Musk’s public image—which has taken a hit since he entered politics—may also have played a role in declining sales.

Seeing his organizations suffer, Musk announced a renewed focus on all his companies. However, after his fallout with President Donald Trump, the billionaire recently vowed to start a third party.

At Tesla, Musk recently fired vice president Omead Afshar, taking direct control of sales. The EV company also launched a limited Robotaxi service in Austin.

While Ford’s EV sales plunged 31% and Hyundai/Kia posted declines, GM saw US EV sales grow, thanks to refreshed models. 

Tesla has cut prices, offered low-interest promos, and refreshed its lineup. However, the promised launch of more affordable models remains unconfirmed.

Despite all efforts, Tesla’s momentum continues to lag in a softening EV market. But investors are optimistic, especially after the company broke its eight-month losing streak in China. Sales rose 3.3% year-on-year last month.