Tesla Faces 13.5% Drop In Sales In 2nd Quarter As Backlash Against Musk Grows

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Alessio AtriaJuly 4, 2025, 10:55 amNews >

Elon Musk‘s automotive company, Tesla, has experienced a 13.5% decline in sales during this year’s second quarter.

The company delivered 384,122 vehicles in the second quarter of 2025. That represents a 13.5% drop from 443,956 units a year ago and the number of cars it delivered in the second quarter of 2022.

Analysts presumed Tesla to report deliveries of almost 394,378 vehicles, according to an average of 23 estimates from Visible Alpha.

Most analysts see the decline as further evidence of the massive consumer backlash against Musk and his work in the Trump Administration.

The decline in sales also means Tesla might underperform its total sales figure from 2024. If that happens, it would mean Tesla’s sales might fall for two consecutive years, even though the company once promoted its ability to increase deliveries by 50% annually.

Tesla’s declining sales in a steadily growing global EV market occur despite Musk saying in April that sales turned around.

In the first quarter of 2025, Tesla delivered 336,681 vehicles, a 13% drop from the 386,810 vehicles delivered during the same quarter in 2024.

The decline is even more significant when compared to the first quarter of 2023, when Tesla reported deliveries of 422,875 vehicles, revealing a 24% decrease during the two-year span.

Musk explained that Tesla’s poor first-quarter sales were partially due to the company shutting down production lines at all of its factories to prepare for the release of the upgraded Model Y.

The company did not have any similarly planned production changeovers during the second quarter.

However, Business Insider reported that some staff working on the Model Y and Cybertruck lines were instructed to stay home for a few days in late May.

Tesla refreshed its top-selling Model Y crossover in early 2025 to boost demand, but the redesign led to a production halt, causing some buyers to postpone their purchases in anticipation of the updated version.