As electric vehicle sales continue to rise, albeit slowly, those increases apparently are coming at the expense of the segment leader: Tesla. The Texas-based EV maker reported its second quarter deliveries dropped 13.5% compared to the same time last year.
Tesla’s Q2 deliveries were down 13.5% on compared to the same period last year.
The company reported delivering 384,122 vehicles in Q2 2025 compared with 443,956 cars, SUVs and Cybertrucks. Not only are deliveries down in the real world, but they also fell short of analyst expectations.
The average of 23 estimates from Visible Alpha suggested the automaker would deliver nearly 394,400 vehicles. However, according to Reuters, some projections were less than 365,000 vehicles.
“In the second quarter, we produced over 410,000 vehicles, delivered over 384,000 vehicles and deployed 9.6 GWh of energy storage products,” the company said in a release. However, CEO Elon Musk said earlier this year that he believed the sales declines the company has experienced for several quarters now had turned around.
Reasons for slump
Tesla CEO Elon Musk said he expected deliveries to improve in Q2.
Despite Musk’s optimism, sales declined again. Many point to the enmity the CEO attracts with his involvement in politics. Many of the company’s supporters leaned — or were well planted — on the left side of the political spectrum.
Musk’s support of President Donald Trump not only had people looking to move away from the company as they considered a new vehicle, scores of current Tesla owners were dumping vehicles as well. These now former owners are EV fans and simply moved to offerings from competitors.
However, Musk’s political activity and views isn’t the only reason for the delivery declines. The company refreshed its top-selling vehicle, the Model Y, during the quarter. The updates required shutting down the production line to make changes. Additionally, many would-be Tesla buyers elected to wait for the new model rather than buy the outgoing version — no matter what incentives were offered.
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Investors rally
Tesla’s Robotaxi trial has excited the company’s investor base.
Although the most prominent sales number is a disappointment, investors are picking through the other details and finding reasons to be excited. The stock price is up more than 4% in early morning trading. While deliveries were down on a year-over-year basis, the actual total is an improvement over the company’s Q1 results, when it delivered 336,681 vehicles.
Additionally, despite the aforementioned production halt to move to the new Model Y, production numbers exceeded expectations by about 10,000 units. Tesla reported production of 410,244 vehicles for the quarter, an increase over the 400,082 expected. It’s also on par with last year’s 410,843 vehicles produced.
The company also reported it deployed 9.6 gigawatt-hours (GWh) of energy storage products, up from 9.4 GWh in the same quarter last year.
However, it isn’t enough to offset the 25% decline in the stock price from the beginning of the year. The stock is now trading in the low $310-range. However, many investors are also excited about the early success — or lack of failure — the Tesla robotaxi trial in Austin, Texas.
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