Wednesday, July 2, 2025

Tesla Vehicle Deliveries Drop 14% in Second Quarter, Marking Steepest Decline on Record

Tesla (NASDAQ: TSLA) reported a significant decline in vehicle deliveries for the second quarter of 2025, with 384,122 units delivered—a 14 percent decrease from the same period last year and the company’s steepest year-over-year drop on record. The electric vehicle manufacturer also produced 410,244 vehicles during the quarter, slightly down from 410,831 produced a year earlier.

The results fell just short of Wall Street’s consensus estimate of 387,000 deliveries, according to FactSet. Despite the miss, Tesla shares rose about 2 percent in Wednesday trading, as some investors had braced for even weaker numbers. The majority of deliveries came from the company’s Model 3 and Model Y lineup, with 373,728 of these vehicles delivered out of 396,835 produced.

This marks the second consecutive quarterly decline for Tesla, following a 13 percent year-over-year drop in the first quarter of 2025. The company does not provide a breakdown of sales by model or region, but the persistent downturn underscores mounting challenges.

Tesla faces intensifying competition, particularly from Chinese automakers offering more affordable electric vehicles, as well as ongoing reputational headwinds tied to Chief Executive Elon Musk’s political activities. The company has also contended with customer delays related to the launch of a refreshed Model Y and waves of protests at showrooms.

Investor sentiment has been further complicated by Musk’s public disputes with political figures, including a recent falling out with former President Donald Trump. Analysts note that these controversies, combined with operational challenges, are weighing on Tesla’s brand and sales momentum.

Tesla is scheduled to release its full second-quarter financial results on July 23, when investors will look for further insight into the company’s strategy amid a rapidly evolving electric vehicle landscape.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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