Tesla has announced a significant fall in its second-quarter vehicle deliveries, with the company handing over 384,122 units. This figure represents a 13.5% drop from the 443,956 vehicles delivered in the same period last year, placing Tesla on track for its second consecutive year of declining annual sales.
The downturn is widely attributed to shifting public sentiment, heavily influenced by CEO Elon Musk’s political leanings, coupled with a vehicle lineup that has not seen substantial refreshes in recent times. This combination appears to be affecting demand, even as the global electric vehicle market continues to expand.
The market has reacted negatively, with Tesla’s stock shedding 25% of its value this year. Concerns are particularly acute in Europe and the US, where sales have seen the sharpest declines. Investors fear significant brand damage stemming from Musk’s embrace of right-wing politics and his involvement with the Trump administration. A public disagreement between Musk and Trump in early June resulted in a massive $150 billion loss in Tesla’s market value, illustrating the direct impact of these public feuds.
Despite efforts to stimulate demand with a refreshed Model Y, the redesign inadvertently caused production delays and prompted some consumers to defer their purchases. Analysts are bracing for a second consecutive annual sales decline, making it incredibly challenging for Tesla to achieve Musk’s ambitious goal of delivering over a million vehicles in the second half of the year, a figure that would represent a new company record.
