Tesla reports 14% drop in vehicle deliveries, a second consecutive year-over-year decline

The recent report indicating a 14% drop in Tesla's vehicle deliveries for the second quarter of 2025 underscores significant challenges within the electric vehicle (EV) market. Specifically, Tesla delivered approximately 384,122 vehicles during this period, including substantial numbers of its Model 3 and Model Y models . This decline not only marks a troubling trend for the company but also highlights broader issues affecting EV demand and competition in an increasingly crowded marketplace.

Tesla reported it sold 384,122 cars in the quarter, down nearly 60,000 cars, or 13.5% from the sales total a year ago. That marks the largest year-over-year drop in sales in the company’s history. However, that number is up 14.1% from its first quarter total.

Despite the sales drop, shares of Tesla (TSLA) opened up nearly 4% in Wednesday trading following the report. That’s because it exceeded some analyst forecasts for a much larger plummet.

Musk’s political activities, especially his role in the Trump administration, have prompted widespread protests at Tesla showrooms across the United States and Europe, along with some instances of vandalism against its vehicles and facilities. The company does not break down its sales by region, but registration data has suggested that both US and European sales have fallen sharply. That came despite sales of electric vehicles (EVs) increasing overall in both markets.

Deliveries in the first quarter of 2025 dropped 13% from a year earlier to 336,681. Deliveries are the closest approximation of vehicle sales reported by Tesla but are not precisely defined in the company’s shareholder communications.

The electric vehicle maker, headquartered in Austin, Texas, doesn’t break out sales and production by model or region. However, the company said that it produced 396,835 of its most popular Model 3 and Model Y cars, with 373,728 combined deliveries for these models in the second quarter.

Production increased in the second quarter, Tesla said Wednesday, suggesting that factories were operating at 70 percent capacity. But lines that produce the Cybertruck pickup, the Model S luxury sedan and Model X sport utility vehicles appear to be operating well below their potential.

The decrease in deliveries represents a second consecutive year-over-year decline, following a similar downturn observed in the first quarter of 2024 . Analysts attribute these challenges to several factors, including rising competition from other automakers entering the EV space and stagnant demand among consumers. Furthermore, there is growing concern regarding public sentiment towards CEO Elon Musk's political engagements, which may be influencing consumer perceptions and brand loyalty .

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Sara H

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