Tesla Sales Plunge Again as Anti-Musk Boycott Shows Staying Power and Rivals Pounce on the Weakness

By: INGLOBE Magazine News Desk

Tesla’s electric vehicle sales have taken a significant hit, with global deliveries falling 13.5% year-over-year in the second quarter of 2025. The company reported delivering 384,122 vehicles from April through June, down from 443,956 in the same period last year. This marks Tesla’s second consecutive quarter of double-digit sales declines, signaling deepening challenges for the automaker amid mounting backlash over CEO Elon Musk’s political stance and intensifying competition from rival EV makers.

Key Points: What’s Behind Tesla’s Sales Decline?

1. Impact of Elon Musk’s Political Controversies
Tesla’s brand has suffered due to Musk’s outspoken support for former President Donald Trump and far-right European politicians. A June poll found that about half of U.S. adults hold an unfavorable view of Tesla, including 30% of Republicans. Musk’s recent public feud with Trump over the budget bill further unsettled investors and consumers, with Trump threatening to use presidential powers against Musk’s companies.

2. Outdated Model Lineup and Market Saturation
Analysts point to Tesla’s current product lineup nearing market saturation, with few new models to attract fresh buyers. While the Model 3 and Model Y remain dominant, sales of other models like the Model S, Model X, and Cybertruck have declined sharply, with “other models” deliveries down 52% year-over-year. Tesla has promised a more affordable EV model this year to stimulate growth.

3. Production vs. Delivery Trends
Tesla produced 410,244 vehicles in Q2 2025, nearly matching last year’s output of 410,831, but deliveries lagged behind production, indicating inventory buildup or delayed sales. Model 3/Y deliveries totaled 373,728, exceeding Wall Street estimates, but overall deliveries were still down due to weak sales of other models.

4. Rising Competition, Especially in Europe and China
Tesla’s market share is under pressure from competitors like China’s BYD, which has gained ground in Europe. Tesla’s European sales dropped 28% in May despite overall EV market growth. Meanwhile, a recovery in demand from China has helped offset some losses, with the updated Model Y gaining popularity.

5. Shift Toward Robotaxis and Autonomous Tech
Tesla is increasingly focusing on self-driving technology and robotaxis, currently testing driverless taxis in Austin, Texas. While promising, these initiatives face regulatory scrutiny after some safety incidents, adding uncertainty to Tesla’s near-term prospects.

Market Reaction and Outlook

Despite the sales slump, Tesla’s stock rose about 5% following the report, as the decline was less severe than some analysts feared. However, the company’s shares have fallen nearly 25% so far this year amid concerns over demand and Musk’s political controversies.

Tesla is set to announce its full Q2 2025 financial results on July 23, 2025, with investors closely watching for signs of recovery or further challenges.

Why This Matters

Tesla’s sales decline highlights the risks of brand damage linked to a CEO’s political views and the challenges of maintaining growth in a maturing EV market. As rivals capitalize on Tesla’s weakness, the company must innovate quickly with new models and technologies to regain momentum.

For ongoing updates on Tesla, EV market trends, and automotive industry news, stay connected with INGLOBE Magazine.