Tesla Sales Plunge In Q2 As Rivals And Boycotts Undercut Musk

Tesla reported a sharp 13% decline in vehicle deliveries for the second quarter of 2025, as the company continues to face consumer boycotts over CEO Elon Musk’s political alignments, Bernard Condon reported for The Associated Press (AP).

Tesla's decline follows a 71% plunge in net income during the first quarter. I Photo: Tesla X

The company delivered 384,122 vehicles from April to June, down from 443,956 in the same period last year.

The drop is the latest sign that backlash against Musk’s vocal support of President Donald Trump and far-right European politicians has had a lasting negative impact on the Tesla brand.

The decline follows a 71% plunge in net income during the first quarter. Tesla’s second-quarter results, expected later this month, could fall short of analyst expectations, despite some bright spots.

Sales of the Model 3 and Model Y reached 373,728 units, exceeding Wall Street’s estimate of 356,000, which led to a 1.5% early gain in Tesla shares.

Still, competition is heating up. Chinese EV giant BYD continues to erode Tesla’s market share, especially in Europe, adding to the pressure on Musk’s company amid softening demand in key regions.