Tesla’s latest delivery tally shows a sharper-than-expected sales drop—the second quarterly decline in a row—as consumer pushback against Elon Musk’s political crusades collides with intensifying global competition.
At a Glance
- Tesla delivered 384,122 vehicles in the second quarter, a 13.5 percent year-on-year drop.
- The figure missed analyst expectations of 387,000, marking a third straight miss.
- First-quarter deliveries had already fallen 13 percent, signalling a possible annual contraction.
- The company will report full second-quarter earnings on 23 July.
- A $30,000 “Cybercab” robotaxi is now pencilled in for 2026 production.
Sales spiral and political fallout
The Wall Street Journal reports that global deliveries have fallen to their lowest level since early 2023, well below last year’s peak of 444,000 vehicles. Analysts link the slump to consumer boycotts triggered by Musk’s public clash with President Trump over electric-vehicle subsidies, a feud that dominated headlines in June. Reuters notes that weak first-quarter numbers had already set the stage for a second yearly decline unless demand rebounds sharply.
Watch a report: Tesla Sales Plunge Again Amid Elon Musk’s Political Moves
Cheap cars, big promises
In response, Tesla has launched lower-spec versions of the Model Y and Model 3 while teasing a $30,000 “Cybercab” robotaxi for 2026. Yet Bloomberg highlights that sales were slowing even before Musk’s political profile surged, suggesting product fatigue as well as reputational risk. Competition is intensifying: Chinese makers BYD and SAIC are undercutting prices in Europe, and GM notched a surprise jump in U.S. EV sales, eroding Tesla’s share. Morgan Stanley analysts warn that “brand toxicity tied to Musk’s rhetoric” could shave another nine percent off 2025 deliveries.
Wall Street on edge
Despite the grim numbers, Tesla’s share price rose 4.5 percent after the report—evidence that traders feared an even steeper drop. Volatility remains high: Bloomberg’s “Open Interest” programme flagged a heavy sell-off two days earlier when Trump vowed to cut EV incentives if Congress balked at his budget proposal. Net profit is already down 71 percent year-on-year, making the 23 July earnings call a critical moment.
Brand strategists say Musk may need to temper headline-grabbing politics or risk lasting damage among core EV adopters, many of whom cite “Musk fatigue” in exit surveys. Yet the CEO doubled down on 1 July, tweeting that critics “will beg for a ride when the Cybercab arrives.” Whether cheaper robotaxis and incremental hardware tweaks can offset a reputational tailspin remains the one-and-a-half-trillion-dollar question facing shareholders—and a growing field of hungry rivals.
