Tesla’s second-quarter vehicle deliveries have fallen sharply, with the company reporting 384,122 units. This represents a 13.5% decrease from the 443,956 units delivered in the same period last year, highlighting the unintended consequences of a recent model refresh and ongoing backlash against its CEO.
The downturn puts Tesla on course for its second straight annual sales decline, a concerning trend given the overall growth in the global EV market. The decline is largely attributed to the backlash against CEO Elon Musk’s political stance and an aging vehicle lineup.
The company’s stock has reflected these anxieties, losing 25% of its value this year. Investors are particularly concerned about brand damage, especially in Europe and the US, where Musk’s political alignments are believed to be alienating a segment of the customer base. The public dispute between Musk and President Donald Trump in early June, which resulted in a massive $150 billion loss in market value, further illustrates the volatility surrounding the CEO’s public image.
Efforts to refresh the top-selling Model Y, intended to boost demand, inadvertently led to production halts and caused some buyers to defer their purchases. Despite Musk’s earlier optimistic outlook, Wall Street analysts are largely predicting a second consecutive annual sales decline for Tesla. Achieving Musk’s ambitious target of delivering over a million units in the second half of the year is viewed as a formidable and unlikely challenge by analysts.