From Elon Musk’s controversial Washington crusade to the Cybertruck’s flop, it’s been a bad year for Tesla. Now, the EV company is reporting a 13% decline in vehicle deliveries for its second quarter, marking the second quarterly decline in a row.
On Wednesday, Tesla reported 384,122 total vehicle deliveries, down from 443,956 in the same period last year. The drop of almost 60,000 vehicles is Tesla’s biggest quarterly decline in the company’s history, and is on par with low expectations from various analysts.
The drop follows last quarter’s decline, with Tesla reporting 336,681 deliveries for this year’s first quarter, down from 386,810 the previous year.
Still, the Austin-based company’s stock is up by 4.4% at the time of publishing, although it is on course for an annual drop amid ongoing challenges related to Musk’s controversies, changing policies, and an increase in EV competition.
BYD takes the lead
Tesla’s sales in European and Asian markets have plunged throughout the year, in part due to other EV manufacturers taking the lead as a demand for EV vehicles remains steady.
Notably, Chinese EV leader BYD outpaced Tesla’s $97.7 billion in annual revenue last year, rising to $107 billion. In April, the Chinese company also outsold Tesla in Europe for the first time, selling 7,231 battery-powered electric vehicles over Tesla’s 7,165.
Despite BYD’s growing popularity, its stock price has been slowly declining, with its shares down 1.4% at the time of publishing.
DOGE controversy
Tesla has been facing backlash following Musk’s 130-day stint as head of the Department of Government Efficiency (DOGE), which implemented massive layoffs and funding cuts for federal agencies.
Public outrage targeted the EV maker, with protests organized outside of Tesla dealerships; videos of users trading in their Teslas going viral on social media; and overall mockery and pranks surrounding Tesla vehicles. Additionally, discontent from the CEO’s political alignment led to sales declines in key U.S. markets like California.
Despite a slight rise in Tesla’s stock following Musk’s departure from DOGE, public trust in the company and sales have not recovered.
Changing policies and a presidential feud
After Musk stepped down as head of DOGE, the former adviser and President Trump entered into a feud over the proposed “Big Beautiful Bill.” The budget bill, which Musk called a “disgusting abomination,” plans to cut EV tax credits, which would likely hurt Tesla’s sales.
Since then, tensions between Musk and the president have risen, with both sharing insults, allegations, and exchanges via social media, while Tesla’s stock plummeted. Early last month, the company’s share price fell as much as 15% (it has since slowly recovered).
Tesla, whose current market capitalization is upward of $1 trillion, is expected to release its second quarter financial results on July 23 after market close.
