Tesla’s second-quarter vehicle deliveries have slumped, with the company reporting 384,122 units delivered. This marks a 13.5% decrease from the 443,956 units delivered in the second quarter of the previous year, serving as a warning sign for its ambitious autonomous future as Tesla heads for its second straight annual sales decline.
The slump is being closely watched by investors, who are increasingly attributing it to the influence of CEO Elon Musk’s political stances on consumer demand, alongside concerns about the company’s aging vehicle lineup. Even as the broader EV market expands, Tesla’s sales are contracting, highlighting unique challenges for the automaker.
The financial repercussions are evident in Tesla’s stock, which has lost 25% of its value this year. Investors are increasingly worried about brand erosion in key European and US markets, where sales have slumped most sharply. The public dispute between Musk and President Donald Trump in early June, which wiped out approximately $150 billion from Tesla’s market value, underscores the direct financial impact of these high-profile disagreements.
Despite efforts to stimulate demand with a refreshed Model Y, the redesign inadvertently caused production delays and encouraged some buyers to hold off on purchases. With most of Tesla’s revenue tied to its core EV business and its ambitious robotaxi plans, the company faces an uphill battle. Analysts are largely predicting a second consecutive annual sales decline, making Musk’s ambitious target of over a million deliveries in the second half of the year seem increasingly out of reach.
