Tesla sales down 13.5% in Q2 amid rising competition, political backlash

ISTANBUL

US-based electric car (EV) manufacturer Tesla saw a 13.5% year-on-year decline in its vehicle deliveries in the second quarter of the year, according to data from the company on Wednesday.

The deliveries fell to 384,122 units in the second quarter of 2025, down from 443,956 in the same period last year.

This year-on-year quarterly drop in deliveries marked the second straight one this year.

The vehicle production of Tesla was also slightly down to 410,244 units from 410,831 in the same period.

Tesla's shares dropped around 26% this year as of Tuesday's close, marking the worst performance among the "Magnificent Seven" shares, putting the EV maker's market cap below the $1 trillion level.

Competition for Tesla is increasing, particularly from Chinese EV manufacturers that offer newer and cheaper models.

Elon Musk, the CEO, is also facing political blowback, with waves of anti-Tesla rallies hurting the company's image and affecting sales.

In the latest US presidential election, Musk was one of the largest financial backers of President Donald Trump.

In order to reduce the size and capability of federal agencies, particularly the regulators in charge of his firms' oversight, he spearheaded the Trump administration's Department of Government Efficiency (DOGE) effort. In May, Musk's official employment with DOGE came to an end.

The relationship between Trump and Musk fell out over Musk's criticism that the "big, beautiful bill" would increase the US budget deficit.

This week, Trump fired back by claiming the billionaire will “head back home to South Africa” if federal subsidies on electric vehicles are cut.

The president also said he will look into deporting Musk and that the Department of Government Efficiency (DOGE) should look into the subsidies Musk's companies have received.