Tesla’s electric car sales exceeded 384,000 vehicles in the second quarter, marking a 13.5% decrease compared to the same period last year. Despite the decline, the sales figure surpassed the nearly 340,000 vehicles sold in the first quarter and fell just below Wall Street’s expectations.
According to data from FactSet, Tesla delivered 384,122 vehicles this quarter (April-June), falling short of market analysts’ expectations of 387,000 vehicles. This decrease of 13.5% compared to the same period in 2024 reflects the challenges the company faces in brand image, consumer trust, and product transformation.
Analysts suggest that some consumers have developed resistance towards the Tesla brand and its CEO Elon Musk, particularly following Musk’s political involvement and leading government efficiency cuts in expenditure.
Increased market competition is also a contributing factor. Tesla now faces fierce competition from Chinese car manufacturers, American car companies, and European electric vehicle makers.
Analysis shows that domestic electric car brands in China and Europe are rapidly catching up, cutting into Tesla’s market share. By comparison, major competitor BYD saw an approximate 15% growth during the same period, boasting the advantages of a diversified product line. Ford’s EV sales saw modest growth, showing stable performance in the U.S. market.
Furthermore, the lack of stimulating new popular models and a slow realization of market expectations from new product transformations have impacted sales. Projects like the Cybertruck and Robotaxi have progressed slowly, failing to translate into significant sales immediately.
To reverse the continuous decline in sales, Tesla is actively launching new models, offering discounts, and shifting focus towards autonomous driving and AI technologies.
Updates and discounts on vehicle models: In March of this year, Tesla released a redesigned popular midsize SUV Model Y; in April, a lower-priced base version of Cybertruck was introduced; in June, updated versions of the premium models Model S and Model X were unveiled. Additionally, low-interest rate loans are being offered to attract buyers.
Shift towards autonomous driving and AI investment: The company launched the Robotaxi autonomous taxi service plan and is testing new autonomous driving ride-hailing services on a small scale in Austin, Texas. The emphasis is on the future potential of its “Full Self-Driving” software and the Optimus humanoid robot.
On June 22nd, Tesla launched a promised robot taxi service to a small group of customers, including social media influencers, by opening a new ride-hailing app for autonomous Model Y rides in certain areas of Austin.
Although the initial service only had fewer than 20 autonomous vehicles and a fixed fare of $4.20 per ride, Musk stated that this initiative could potentially increase Tesla’s market value by 5 to 10 trillion dollars in the future.
However, analysts suggest that to achieve this goal, Tesla still needs to continue selling vehicles, as vehicle sales revenue remains the primary source of funding for its AI and robot technology investments.
Despite lower-than-expected delivery figures, Tesla’s stock price rose by 2.4% at Wednesday’s opening, indicating that some investors still hold confidence in its future technological development. This also reflects the market response following the latest delivery data release. However, whether sales can quickly rebound remains to be seen based on Tesla’s performance in the second half of the year and global market reactions.