In the second quarter of 2025, the company Tesla, founded by Elon Musk, reported a significant decline in sales of its electric vehicles. During this period, 384,122 cars were sold, which is 13.5% less compared to the same period last year.
This is reported by Finway
Reasons for the Decline in Demand for Tesla Cars
Analysts note that several factors contributed to the drop in sales. In particular, some experts link this to buyers’ reactions to the political views of the company’s CEO, Elon Musk, which some observers describe as “nationalistic.” Another factor is Tesla’s “outdated” model portfolio, which, according to specialists, may not meet the expectations of modern consumers.
Experts explain the decline in sales by the political views of CEO Musk, which some consider “nationalistic,” as well as an “outdated” model lineup that allegedly deters buyers.
Recovery of Demand in the Chinese Market and Competitive Struggles
Despite the decline in global figures, Tesla has managed to partially offset losses thanks to a recovery in demand in the Chinese market. The updated Model Y has gained popularity among local consumers, even amid increased competition from Chinese electric vehicle manufacturers, particularly the BYD brand, which offers more affordable models.
It is worth noting that Tesla’s electric vehicle production from April to June 2025 decreased by only 0.1%, totaling 410,244 units. This indicates the stability of the company’s production capacities even in challenging market conditions. In comparison, in the first quarter of 2025, Tesla’s sales also fell by 13%, totaling 336,681 vehicles.