Tesla has long been the darling of the automotive industry. Until recently, the electric vehicle manufacturer was viewed as hip and cool, while other automakers were seen as old and stodgy. Tesla’s stratospheric stock price was the envy of every rival; the once-closed, now-open Supercharger network was – and likely remains – the best charging system in the world; and this car company moves quickly to introduce new technologies that others won’t – or can’t. Historically, there have been many positives to Tesla vehicles, but the bloom may finally be off the rose.
Sales Are Still Sagging
The company’s second-quarter 2025 sales numbers are in, and they are not great. Globally, Tesla produced 410,244 vehicles and delivered 384,122 during this three-month period, a healthy number to be certain. That total, however, is not so nice when you contrast it with the same period last year. Overall, sales declined 13 percent compared to the second quarter of 2024, a sizable drop.
Based on numbers shared by the company, it looks like Tesla sold 373,728 copies of the closely related Model 3 sedan and Model Y utility vehicle. “Other models,” ostensibly the combined total of the Model S four-door, Model X SUV, and controversial Cybertruck pickup, totaled just 10,394, far, far fewer.
Tesla faced a similar decline in the first quarter of 2025, with sales reportedly falling 13 percent. Beyond that, the automaker delivered around 1.8 million vehicles last year, a performance that is essentially flat compared to 2023, meaning Tesla lost the showroom momentum it’s had for years. Deliveries absolutely exploded between 2017 and 2023.
The Perfect Storm
All good things must come to an end, and it’s possible Tesla has reached the limit of drivers who want an EV and are willing to drive a Muskmobile. Aside from that, much of the automaker’s lineup is rather stale, which could be turning customers off. Even though the Model 3 and Model Y were just refreshed, the changes made to these vehicles were quite minor.
There are other factors to consider, too. Rival automakers have entered the EV space with a vengeance, and they are building some extremely competitive products that offer more style, features, and quality than what Tesla has delivered. In addition to greatly increased competition, company CEO Elon Musk has also been, to put it lightly, a controversial figure in recent years. The leader’s work with President Trump has undoubtedly been an issue for many potential customers, and his provocative gestures at the inauguration have turned even more people away.
What happens to Tesla in the coming months and years remains to be seen, but it certainly seems that the wind is no longer in this electric vehicle manufacturer’s sails.
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