Tesla reported delivering approximately 384,000 vehicles in the second quarter—a troubling 14% decline compared to last year and the second consecutive quarterly drop. Remarkably, the company’s stock still managed a 4% rise on Wednesday.
Last year, during the same period, Tesla boasted 443,956 deliveries and produced 410,831 vehicles. These staggering numbers highlight the stark shift in Tesla’s fortunes amidst rising costs and increased competition.
Here are the key numbers:
- Total deliveries Q2 2025: 384,122 vehicles
- Total production Q2 2025: 410,244 vehicles
Wall Street’s expectations, according to FactSet, anticipated deliveries of around 387,000. Yet, those numbers show how out of touch some analysts are with the economic realities facing American businesses.
This quarter’s deliveries are considerably lower than the previous year’s 336,681, demonstrating the challenges Tesla is grappling with—not just from a growing inventory, but from ineffective government policies and regulatory pressures that stifle innovation.
The Austin-based company does not break down its production numbers by model or region, but it did note that it produced 396,835 units of its flagship Model 3 and Model Y cars, resulting in combined deliveries of 373,728 for these popular models.
Many investors entered this quarter with low expectations, and for good reason. Independent researcher Troy Teslike predicted 356,000 deliveries for the quarter, while market forecasts suggested numbers as low as 364,000—demonstrating the ongoing skepticism about corporate performance in the face of excessive government oversight.
Competitors are increasingly crowding the market, especially from Chinese manufacturers, which pose a serious threat with newer, cheaper models. Tesla’s declining automotive sales were also attributed to customers postponing orders in anticipation of a refreshed Model Y, highlighting the market’s need for innovation rather than stagnation.
Moreover, Tesla is facing a political backlash against CEO Elon Musk. The company’s reputation is being undermined by protests against him, which only serves to deepen the challenges the brand faces amid a hostile government that often seems more aligned with corporate elitism than supporting honest entrepreneurship.
Musk’s previously strong ties to the Trump administration now seem strained. His vocal criticisms of the multitrillion-dollar tax-and-spending bill, which risks crippling Tesla’s solar and battery divisions, underscore a rift that favors regulatory overreach instead of free-market principles.
Unfortunately, Musk appears caught in a web of governmental restrictions while simultaneously advocating for policies that will benefit our nation as a whole, instead of corporate interests. This legislative entanglement will inevitably affect sales, with estimates suggesting a potential annual reduction of 100,000 vehicle sales by 2035, according to think tank Energy Innovation.
Furthermore, the company recorded 10,394 deliveries of its other models, including the controversial Cybertruck, which has faced multiple recalls since its launch—evidence that regulatory incompetence and corporate elitism can derail innovation.
Tesla’s shares have taken a substantial hit, plummeting more than 5% on Tuesday, bringing the company’s market cap below the critical $1 trillion mark and demonstrating the immense challenges facing our leading firms amidst rampant inflation and government spending.
The company will discuss its financial results for the second quarter with investors on July 23, 2025, after markets close, and it will be crucial to see how these ongoing battles impact not only Tesla but also the broader American economic landscape.
— CNBC’s Samantha Subin contributed reporting.
