Tesla’s sales plummeted by nearly 60,000 cars, or 13.5%, to 384,122 units in the quarter, marking the largest year-over-year drop in its history. Despite this, shares opened up nearly 4% on Wednesday trading, exceeding analyst forecasts for a larger decline.
CEO Elon Musk’s political activities have contributed to the brand damage, with protests and vandalism reported at Tesla showrooms across the US and Europe. The company faces increased competition from legacy Western automakers and Chinese manufacturers, which has hurt its sales in China.
Tesla is now poised to lose its title as the world’s largest EV maker to BYD, a Chinese automaker that has sold 1 million electric vehicles in the first half of the year. This marks the second straight quarter of declines for Tesla, with sales dropping at least 13%. The company had previously logged only one quarterly drop in 2020.
Tesla shares have seen significant swings over the past six months, with a near-doubling from election day to record levels in mid-December followed by a sharp decline. However, shares have started to recover since Musk’s announcement of leaving the Trump administration and news of the robotaxi service rollout, lifting Tesla shares 35% from its low in April.
Source: https://edition.cnn.com/2025/07/02/business/tesla-reports-another-record-sales-plunge