Tesla Sales Crash Deepens As Rivals Eat Into Market Share

Any investors praying Tesla’s in the first quarter of 2025 was merely a blip have just had their hopes dashed. The troubled automaker announced its Q2 numbers and they show an even bigger year-over-year decline than the ones covering January to March.Also: Global deliveries declined 14 percent in Q2, falling from 410,244 to 384,122, making the most recent quarter’s performance marginally worse than Q1’s. For that period Tesla recorded a 13 percent drop after sales sunk by 50,000 to 336,681 units.Sales Still Centered on Model 3 and Model YTesla didn’t offer a complete breakdown of its Q2 numbers by model or region, but it did reveal that the Model 3 and accounted for practically all of its sales. The automaker delivered 373,728 Model 3 and Y EVs, and only 10,394 of its other cars, which include the Model S, Model X and Cybertruck, combined. The electric automaker also said it produced over 410,000 vehicles of all types.Although delivery figures aren’t exactly the same as sales numbers, they’re close enough to give us a solid idea of the problems faced by Tesla, and the buying public’s apathy for its cars. Those problems include widespread dislike of CEO Elon Musk due to his vocal right-wing opinions and association with DOGE and the Trump administration, which is one of the reasons sales have cratered in Europe in recent months.Intensifying Competition in China and BeyondAnd in China, a key market for Tesla, the American brand is battling against a slew of hi-tech rivals that seem intent on pushing prices downwards to the detriment of profitability. Some of those same Chinese rivals are also now causing Tesla problems in other markets. In April than Tesla in Europe, where the Model Y and 3 are struggling to regain their sales form despite recent facelifts.Although Tesla’s Q2 performance looks dire, the figures aren’t as bad as some analysts had feared. And Deepwater Asset Management’s Gene Munster predicted the quarter represented a bottoming out for Tesla, which could bounce back in future periods, reports. Tesla will announced its complete Q2 financial results on July 23.