Another sales slump: Tesla also suffers in the second quarter of the year

Tesla's problems continue. In the second quarter of the year, the American electric car manufacturer's delivery figures remained significantly below the previous year's figures. Although production is rising to the previous year's level, customer confidence and demand for the vehicles are not keeping pace.

Between April and June, Tesla delivered 384,000 vehicles worldwide. This represents a decrease of 13.5 percent compared to the second quarter of 2024. At the same time, production again reached the same level as the same quarter last year, at around 410,000 units.

A 13 percent decline in deliveries had already been recorded in the first quarter. At the time, the weakness was attributed, among other things, to the transition to the new Model Y, which had led to temporary production interruptions.

The new Model Y began deliveries in March, but failed to break the slump. While the Model Y remains the best-selling model in Tesla's lineup, the newly revised version has failed to generate a noticeable impact on demand. The discrepancy between production and sales is widening. A recurring seasonal pattern in deliveries is not discernible. Whether Tesla will be able to reverse the trend later in the year remains to be seen.

At the same time, the framework conditions are changing. As part of the new budget legislation known as the " Big Beautiful Bill ," the US Senate has voted to abolish federal subsidies for electric vehicles. Vehicles purchased or leased from October 1, 2025, will no longer receive any government subsidies.

New registrations are also declining in Europe. According to the European Automobile Manufacturers' Association (ACEA), Tesla sales in the EU plummeted by 45 percent between January and May. In Switzerland, sales fell by 27 percent in January compared to the same month last year. For Tesla, it's a war on multiple fronts.

Tesla responded with structural changes. CEO Elon Musk resumed direct responsibility for sales in North America and Europe following the departure of his longtime confidant Omead Afshar. According to consistent reports from Forbes and CNBC , Musk allegedly fired Afshar personally. The company has not yet commented on the events.

Tesla is no longer considered unchallenged in the electric car market. Chinese manufacturers are investing heavily every year in expanding their electric offerings. BYD, for example, has tripled its share price and even increased its sales tenfold in the last five years.

The Chinese technology company Xiaomi recently launched its first electric sedan, the SU7. According to the company, 300,000 pre-orders were received within three minutes of its market launch in China. The model offers comparable technical features but costs half as much.

Although the SU7 is currently only available in China, Xiaomi plans to expand into global markets by 2027. Industry magazines, as they often do, are predicting a Tesla killer.

Last but not least, Tesla CEO Elon Musk, who has fallen into disrepute, is also contributing to the company's ailing financial results. Calls for a boycott have been loudly heard in connection with his activities as a political advisor to US President Donald Trump. Activists have protested in front of Tesla locations around the world, defaced the vehicles with slogans, or even set them on fire.

The collaboration between Musk and Trump ended in a public rift. Musk announced that he would once again focus on Tesla, but soon reappeared in politics.

In fact, despite the weak sales figures, there are signs that the situation is calming down. The redesigned Model Y, for example, is repeatedly dominating new registration statistics in Norway, the electric car capital. And the stock market also reacted better than expected to the poor figures: Tesla shares even rose slightly following the publication of the new quarterly figures. Analysts emphasize that the figures, while disappointing, are better than feared. The lowest forecasts have been exceeded.

The environment remains challenging for Tesla. Demand is declining, competition is intensifying, and Musk's political presence remains a reputational risk. The company's production is stable, at the previous year's level. Whether production is meeting actual demand or leading to inventory buildup is not publicly known. For now, however, Tesla remains globally visible and technologically ambitious.

With the huge success of the Model 3, Tesla has already proven gloomy predictions wrong in the past. This time, too, the apparent setback could prove to be a stepping stone to the next happy turn of events.