Tesla’s electric vehicle sales are slipping, despite CEO Elon Musk’s efforts to diversify his attention. The company reported 14% fewer deliveries in the second quarter compared to last year, with only 384,122 vehicles sold and produced 410,244 units. This marks the second consecutive year-over-year decline in sales.
Musk’s preoccupation with other ventures, such as X, SpaceX, Neuralink, and The Boring Company, seems to be taking a toll on Tesla’s core business. The company’s robotaxi pilot fleet in Austin, Texas, also underperformed. Musk’s public feuds with former President Trump have only added to the brand’s alienation among some consumers.
Tesla owners who initially bought electric vehicles for environmental reasons are now disavowing the brand due to concerns over Musk’s leadership. Recent Forrester research suggests that Tesla fails to connect with potential buyers, with many considering the brand untrustworthy and not worth purchasing. The company’s sales slump in Europe and the US may be a hard sell to overcome without significant changes in its strategy.
The Optimus program, aimed at autonomous vehicles, is reportedly paused following the departure of its chief, Milan Kovac. Design changes are being made to address issues with the robots’ capabilities. It remains unclear whether Musk will step into the vacant role or assume oversight of Tesla’s sales in the US and Europe.
Source: https://www.theregister.com/2025/07/03/elon_musk_tesla_deliveries_distraction