Sales of Tesla electric cars fell sharply in the last three months as boycotts over Elon Musk’s political views continue to keep buyers away.
This downturn marks the second consecutive quarter of falling deliveries.
Despite hopes that sales would recover, especially after Musk formally departed the Trump administration as a cost-cutting czar, the numbers tell a different story.
Tesla reported 384,122 deliveries in the second quarter, a 13.5% drop compared to the same period last year. While these figures were largely in line with analyst expectations, the company’s earnings report, due after market close, will provide further insight.
Sales of the Models 3 and Y combined reached 373,728, surpassing Wall Street’s estimate of 356,000 for those specific models.
However, a key concern emerges from production figures: Tesla manufactured 410,244 vehicles during the quarter. This means the company built over 26,000 more cars than it sold, marking the third straight quarter where production has outpaced deliveries.
Q2 2025
| Production | Deliveries | Subject to operating lease accounting | |
| Model 3/Y | 396,835 | 373,728 | 2% |
| Other Models | 13,409 | 10,394 | 7% |
| Total | 410,244 | 384,122 | 2% |
This dip in Tesla’s sales reflects a broader shift in the electric vehicle market. Once dominated by Tesla, the EV landscape is now far more competitive. BYD, low-cost Chinese manufacturers like BYD, alongside established automakers such as General Motors, Toyota, Hyundai and Volkswagen, are all vying for market share.
Adding to the challenges, overall demand for EVs has softened. This can be attributed to looming tariff fears and the impending end of the EV tax credit in the United States, both of which may be making potential buyers hesitant.
