Tesla is experiencing the Q2 blues, reporting a significant drop in vehicle deliveries to 384,122 units. This represents a 13.5% decrease from the 443,956 vehicles delivered in the same period last year, signalling a challenging road ahead for the EV leader as it heads for its second straight annual sales decline.
The downturn is largely attributed to the backlash against CEO Elon Musk’s political stance and an aging vehicle lineup. These factors appear to be contributing to a decline in demand, even as the global EV market continues to expand.
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.
Picture credit: www.commons.wikimedia.org
