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Home Electric Vehicles

Tesla’s troubles deepen, deliveries down 14% in Q2

...Musk faces market and political firestorms

David Ijaseun by David Ijaseun
July 4, 2025
in Electric Vehicles, Premium
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Tesla’s troubles deepen, deliveries down 14% in Q2
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Tesla has reported a 14% year-on-year drop in vehicle deliveries for the second quarter of 2025, delivering just 384,122 vehicles globally. It marks the company’s second consecutive quarterly decline, and its steepest since the first quarter of 2022. While slightly better than some analysts feared, the numbers underscore Tesla’s growing struggle to maintain momentum in a fiercely competitive electric vehicle (EV) market.

Last year, Tesla delivered over 443,000 vehicles in the same quarter. But this year’s figures reveal how the company is contending with multiple headwinds: intensifying competition from China’s EV makers, political controversies involving CEO Elon Musk, and a notable shift in consumer sentiment. Notably, Tesla’s deliveries of its flagship Model 3 and Model Y models accounted for over 373,000 units in Q2, while its other models, including the beleaguered Cybertruck, added just 10,394.

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Tesla’s stock is down 22% year-to-date, the worst performance among tech’s major players. Still, shares spiked nearly 5% after the Q2 report, thanks to delivery figures exceeding grim forecasts from some independent researchers. “This is a fork-in-the-road moment,” said Wedbush analyst Dan Ives. “Tesla must act decisively or risk fading relevance.”

Politics, protests, and EV pivots

CEO Elon Musk’s controversial political ties are adding fire to the brand’s woes. His former role in the Trump administration’s DOGE initiative and support for far-right politics in Europe has sparked international protests and calls to boycott Tesla. In Germany, Australia, and several Scandinavian countries, Tesla’s sales reportedly plummeted over 70% year-over-year in February. In China, a crucial EV market, March sales fell 11.5% to just 79,000 units.

Backlash hasn’t only come from buyers. Vandalism, arson, and even gunfire have targeted Tesla dealerships, with U.S. authorities now categorizing such attacks as domestic terrorism. A growing number of Tesla owners say they’re selling their vehicles out of fear or embarrassment, with listings for used Teslas rising 33% this year, according to Cox Automotive.

Meanwhile, Tesla’s once-lofty ambitions are facing industrywide slowdowns. Its updated goal of 1.63 million deliveries in 2025, down 9% from last year, highlights the company’s struggle to hit its growth targets. Musk has pinned future recovery hopes on a forthcoming affordable Tesla and a Texas-based robotaxi rollout expected later this year.

Can Tesla reignite its spark?

Tesla Vehicle Deliveries (2011–2024)
Tesla Vehicle Deliveries (2011–2024)

Tesla’s longer-term delivery trend reveals a meteoric rise, from just 2,650 cars in 2012 to nearly 1.8 million in 2024. But the Q2 figures and back-to-back quarterly declines suggest that momentum may be stalling. The company also faces significant recalls, with the Cybertruck alone having been recalled eight times since late 2023.

Investor Gene Munster believes the worst may be over. “Q2 might be the bottom,” he wrote on X. Still, others are less optimistic. Investment advisor Ross Gerber said Tesla’s high-end EV market “has totally eroded,” calling the Cybertruck “basically unsellable.”

In a market where Chinese competitors offer sleek, tech-packed EVs at lower prices, Tesla now faces its biggest test yet; whether it can maintain its identity and relevance amid shifting politics, protest, and pressure.

Read more on Tesla stock sinks 6% after Trump attacks Musk over billions in U.S. subsidies

Tags: Elon MuskHeadlineTesla

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