Tesla Vehicle Deliveries Drop for Second Straight Quarter Amid Rising Pressure and Political Turmoil
Tesla has reported a 14% drop in vehicle deliveries for the second quarter of 2025, marking its second consecutive quarterly decline as the electric vehicle giant contends with intensifying competition and mounting political fallout.
Between April and June, Tesla delivered just over 384,000 vehicles, a significant slide that signals continued headwinds for the company. The numbers fall short of Wall Street expectations and add to concerns over Tesla’s slowing growth in an increasingly saturated global EV market.
The latest dip comes amid growing rivalry from Chinese automakers – most notably BYD, which has made aggressive gains in key international markets. Analysts say Tesla’s pricing power has weakened as new entrants continue to undercut its offerings in both technology and affordability.
Adding to Tesla’s challenges is the political firestorm surrounding CEO Elon Musk, whose brief and controversial tenure as the head of an experimental U.S. government task force, the Department of Government Efficiency (DOGE), has drawn scrutiny. Although Musk has since stepped down from the post, tensions with former President Donald Trump have escalated in recent weeks.
Trump, responding to Musk’s public opposition to a White House-backed spending bill, threatened to revoke federal subsidies received by Musk’s companies and floated the idea of using DOGE to investigate Tesla’s finances.
“Elon may get more subsidy than any human being in history, by far,” Trump posted on social media. “Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!”
Musk responded tersely: “I am literally saying CUT IT ALL. Now.”
Trump has accused Musk of turning against the administration over a clause in the spending bill that removes tax incentives for electric vehicle buyers, potentially impacting Tesla’s future sales. “He’s very upset,” Trump told reporters. “He could lose a lot more than that.”
Despite the drama, some market analysts remain cautiously optimistic. Gene Munster of Deepwater Asset Management called the 14% delivery decline a possible bottoming out, and projected a smaller 10% drop for Q3 and a flat close to the year.
“The good news: that ~14% should mark the bottom,” Munster wrote on X, formerly Twitter. He added that confusion surrounding the EV tax credit could temporarily boost sales, as buyers may rush to capitalize on incentives before they expire.
Tesla’s long-term outlook may hinge on its robotaxi initiative, which launched in Austin, Texas last month. While early reception has been mixed, Munster believes that if Tesla can show real progress in autonomy, investors may overlook flat delivery numbers in the near future.
“For the next two years, I think investors will be fine with flat deliveries—as long as autonomy shows measurable progress,” he said.
As Tesla navigates a shifting automotive landscape and deepening political controversy, the road ahead appears anything but smooth.
