The electric vehicle maker has posted its second straight quarter of declining deliveries this year, continuing to pay the price for Elon Musk’s political turn.
Tesla’s struggles continue as the company reports another drop in vehicle deliveries, deepening concerns that its image problem, especially in Europe, is weighing heavily on consumer demand.
In the second quarter of 2025, the electric vehicle giant delivered 443,956 vehicles, a 13.5 percent decline from the same period in 2024. Deliveries are Tesla’s key sales metric and are closely watched by investors and analysts alike. Nearly all of those deliveries — 97.3 percent — were for the company’s two most popular models: the Model 3 and Model Y.
Wall Street had expected a dip of about 10 percent, so the final number was worse than anticipated.
The drop underscores the lasting impact of Elon Musk’s political turn. Once a darling of eco-conscious and tech-savvy progressives, Tesla has alienated parts of its original customer base. The shift became more pronounced after Musk accepted a high-profile role in the Trump administration, running the Department of Government Efficiency (DOGE), an agency tasked with cutting federal spending. Under Musk, DOGE became infamous for slashing budgets without concern for what those programs did.
