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@latimesTesla sales continue to slide amid competition and backlash against Elon Musk
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Tesla Q2 Deliveries Slide 14%, Second Annual Sales Decline Looms
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Tesla delivered 384,122 vehicles worldwide in the three months to 30 June, a 13.5% decline from a year earlier and the company’s steepest year-on-year drop on record. The result, Tesla’s second successive quarterly decrease, missed analysts’ average forecast of 394,378 units and leaves the electric-car maker facing the prospect of a second straight annual sales contraction.
The shortfall underscores the pressure on Chief Executive Officer Elon Musk as competition intensifies and his high-profile political activity erodes parts of Tesla’s customer base. Most of the quarter’s volume came from the Model 3 and Model Y—373,728 vehicles—while a delayed rollout of a lower-priced model and a pause to retool factories weighed on output.
Despite the weaker numbers, Tesla shares rose about 4% after the announcement, as the decline was not as severe as the most pessimistic projections. To return to growth this year, the company would have to deliver more than one million vehicles in the traditionally stronger second half, a target analysts say will be difficult amid tariff-driven uncertainty and looming cuts to U.S. EV subsidies.
Tesla has relied on discounted financing and a refreshed Model Y to steady demand, particularly in China, and is betting on autonomous driving and a planned robotaxi service to reignite momentum. Analysts warn that political backlash, an aging line-up and aggressive pricing by rivals such as BYD could keep pressure on volumes and margins.
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