Tesla is headed for another year of declining sales after posting a second consecutive drop in quarterly deliveries, weighed down by CEO Elon Musk's public image and an aging vehicle lineup that has turned off some buyers.
The company faces increasing competition from rivals, including China's BYD, which is rolling out cheaper, flashier models at breakneck speed. Musk's controversial role as a head of government efficiency department in the Trump administration has also been blamed for the plunging numbers. Though Musk has since left the role, he has publicly clashed with the U.S. President over a massive spending bill pushed by the White House.
Tesla reported around 384,000 vehicle deliveries in the second quarter, a 14% decline from a year earlier. First-quarter deliveries in 2025 also fell 13% year over year to 336,681.
Deliveries are the closest proxy for Tesla vehicle sales, as the electric vehicle maker doesn’t break out sales and production by model or region.
While the quarterly delivery figures are closely by investors, some analysts have downplayed the results, possibly pricing in optimism ahead of Tesla’s Q2 earnings report, due after markets close on July 23. Tesla stock jumped 5% on Wednesday.
Some analysts say investor attention is now shifting toward the rollout of Tesla's robotaxi program, which launched on a small scale in Austin, Texas, just over a week ago.
Despite Wednesday’s gain, Tesla shares remain down about 17% for the year — one of the weakest performances among mega-cap tech stocks in 2025 so far. For the record, Meta has posted the strongest returns.
All eyes are now on July 23, when Tesla will hold its earnings call. Investors will be looking for clarity on how Musk plans to restore deliveries, production, and investor confidence.
