Tesla says it delivered 384,122 electric vehicles in the April-June timeframe, which is a 14 percent drop compared with the same period in 2024. It's also the second quarter in a row that sales have fallen year-over-year (YoY).
The company produced 410,244 vehicles in Q2, which is very close to the 410,831 it made during the equivalent period last year. However, the company delivered more vehicles (443,956) than it produced in Q2 2024. That's not the case this time. The number of vehicle deliveries in Q2 2025 plummeted by nearly 60,000 YoY.
The line has been trending downwards for a while now. The company saw a dip in annual deliveries for the first time in 2024. For the first quarter of 2025, Tesla reported 336,681 deliveries, which is a drop of 13 percent from the same three-month period in 2024.
Multiple reports over the last several months suggested that Tesla sales had been falling in several markets. CEO Elon Musk reportedly fired Tesla's head of manufacturing and operations, Omead Afshar, last week as the numbers continued to sink.
Various factors have played a hand in Tesla's declining sales numbers. For one thing, the company (which is focusing more on autonomous driving efforts such as the Robotaxi) is facing tougher competition, particularly from Chinese manufacturers that are making less-expensive models.
And then there's the Musk factor. So much of Tesla's success has been pegged to the public persona of its chief executive. But there's been a significant backlash against Musk in recent years, particularly after he became a major financial backer and advisor to President Donald Trump during the 2024 election campaign. After Trump's inauguration, Musk became the head of the administration's Department of Government Efficiency program, adopting a similar slash-and-burn approach to cost-cutting within the government to the one he undertook at X. Musk formally left his government role in May.
In recent weeks, Musk has become an ardent critic of the Trump administration's major tax and spending bill. The proposed legislation — which is no longer officially called The One Big Beautiful Bill Act — passed the Senate on Tuesday and is set for another House vote. The bill includes provisions that could harm Musk's businesses, such as removing incentives for consumers to buy EVs. Trump has threatened to end contracts that Musk's companies have with the government amid a spat between the two men.
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