By John Meyer, consultant in financial affairs – Eurasia Business News, July 2, 2025. Article no. 1592.

Tesla’s global vehicle deliveries plunged by approximately 13.5% year-over-year in the second quarter of 2025, with the company delivering 384,122 electric vehicles, down from 443,956 units in Q2 2024. This marks the second consecutive quarter and the second straight year of declining sales for Tesla.

Deliveries missed analyst expectations, which were around 387,000 vehicles, though some more pessimistic forecasts had predicted even lower numbers.

Production, however, increased to 410,244 vehicles, up from 362,000 in Q1 2025, leading to an accumulation of inventory as production outpaced deliveries by about 25,000 units.

The decline in deliveries is attributed to several factors:

  • Brand damage and slowing demand due to CEO Elon Musk’s political controversies and alignment with right-wing politics, which have alienated some customers and investors.
  • Increased competition from rapidly growing Chinese EV manufacturers such as BYD and Xiaomi.
  • An aging vehicle lineup and challenges in refreshing the product range.
  • The best-selling Model 3 and Model Y accounted for the majority of deliveries, but even these models saw an 11.5% decline in deliveries, while other models, including the Cybertruck, experienced a 51.8% plunge in deliveries.

Despite the delivery slump, Tesla’s stock rose about 4-6% after the announcement, as the results were not as poor as some of the worst-case analyst predictions, and there was some optimism that the company may have passed its most difficult period.

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Tesla will release its full financial results for Q2 2025 on July 23, 2025, which will provide more insight into the company’s overall performance beyond deliveries and production figures.

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Tesla’s Q2 2025 vehicle deliveries plunged sharply due to a combination of demand challenges, political backlash, and fierce competition, signaling a difficult phase for the automaker as it navigates a changing EV market landscape.

Tesla’s net income for the first quarter of 2025 had plunged by 71%, reflecting a significant profit decline amid political backlash and operational challenges. The company reported earnings per share (non-GAAP) of $0.27, missing Wall Street expectations which were around $0.35 to $0.41 per share. Revenue also fell short, coming in at $19.3 billion versus estimates near $21.3 billion.

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© Copyright 2025 – Eurasia Business News. Article no. 1592.