Tesla, once the high-flying leader of electric vehicles, is facing a stark new reality. The company’s latest sales figures show a surprising dip. Deliveries of its shiny electric cars dropped by almost 60,000 units compared to last year. This is not what anyone expected just a few months ago. Many observers are pointing a finger directly at CEO Elon Musk for the downturn.
Tesla’s Sales Take a Hit
Tesla announced it delivered 384,122 electric cars from April to June. This is a big 14% drop compared to the same time in 2024. It marks the second quarter in a row that sales have fallen year-over-year. The company made 410,244 vehicles in the second quarter of this year. That number is very close to the 410,831 cars they produced in the same period last year. However, in the second quarter of 2024, Tesla actually delivered more cars than it made. Back then, they handed over 443,956 electric cars to customers.
This time, the difference is clear. Deliveries in the second quarter of 2025 plunged by nearly 60,000 units compared to last year’s Q2. This downward trend has been brewing for some time. Tesla saw its first annual drop in deliveries in 2024. The first quarter of 2025 also saw a decline, with 336,681 deliveries. That was a 13% drop from the first three months of 2024.
Here’s a quick look at the production versus delivery numbers for the latest quarter:
| Production | Deliveries | |
| Model 3/Y | 396,835 | 373,728 |
| Other Models | 13,409 | 10,394 |
| Total | 410,244 | 384,122 |
Elon Musk’s Influence
Recent reports highlight that Tesla’s sales have dipped in many global markets. A few things are playing into this decline. First, Tesla faces much tougher competition, especially from Chinese carmakers. They are releasing cheaper electric models, giving buyers more options.
Then there’s the Elon Musk effect. A big part of Tesla’s past success was linked to its CEO’s unique public image. But lately, there has been a lot of pushback against Musk. This became more noticeable after he became a major supporter and advisor to President Donald Trump. When Trump took office, Musk even led a government efficiency program for the Department of Government. He officially left that government role in May.
In recent weeks, Elon Musk has openly criticized a new tax and spending bill from the Trump administration. The Senate approved this bill just this week. The new law has parts that could hurt Musk’s businesses. For example, it might remove tax breaks for people buying electric cars. Some of the latest news even suggests that Donald Trump is thinking about deporting Elon Musk. This kind of public drama doesn’t typically help a company’s bottom line.