Tesla’s second-quarter vehicle deliveries have taken a significant dive, prompting questions about whether the recent Model Y refresh will be enough to stem the tide. The company reported 384,122 deliveries, a 13.5% drop from the 443,956 units delivered a year ago. This performance puts Tesla on course for its second straight annual sales decline, a concerning trend in a steadily growing global EV market.
The downturn is largely attributed to the mounting backlash against CEO Elon Musk’s political stances and the perceived stagnation of Tesla’s vehicle lineup. While analyst expectations varied, the actual figures underscore a weakening demand for Tesla products, particularly in key markets.
The company’s stock has reflected these anxieties, losing 25% of its value this year. Investors are increasingly 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.
Despite efforts to refresh the top-selling Model Y, intended to boost demand, it 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.