Tesla (TSLA) Q2 Deliveries Slump Again: Political Headwinds and EV Wars Heat Up

Another quarter, another drop—Tesla's delivery numbers keep sliding as political storms and cutthroat competition slam the brakes.

Wall Street's darling hits a pothole

Elon's empire stumbles as legacy automakers and Chinese rivals eat into market share. The 'growth stock' narrative? Looking shakier than a Cybertruck panel gap.

EV cold war escalates

While Tesla fumbles with politics and production, BYD and friends are gobbling up the global EV pie. That 'unassailable lead'? About as solid as a Twitter revenue projection.

Silver lining playbook?

Bulls whisper about AI and robotaxis saving the day—because when your core business sputters, nothing helps like a good old-fashioned moonshot narrative. Meanwhile, the stock still trades at 50x earnings because 'fundamentals are for peasants.'

TLDR

• Tesla reported 384,122 deliveries in Q2 2025, missing Wall Street expectations by 1,000 vehicles
• Vehicle output dropped 14% year-over-year, marking the second straight quarterly decline
• The stock rallied 4.5% despite poor delivery results, bouncing from political controversies
• Elon Musk exits Trump administration role to address Tesla’s ongoing performance decline
• Tesla’s Q2 earnings report is scheduled for July 23, with eyes on margins and revenue

Tesla Inc. (NASDAQ: TSLA) closed at $315.35 on July 3, down slightly by 0.10%. The company reported a second consecutive quarterly decline in vehicle deliveries.

Tesla, Inc. (TSLA)

The electric vehicle (EV) giant delivered 384,122 vehicles in the second quarter of 2025, a 14% drop compared to the same period last year. Analysts had expected roughly 387,000 deliveries, making this another miss for Tesla in a year full of operational challenges.

Delivery Declines and Vehicle Production

Tesla produced 410,244 vehicles in the quarter, including 396,835 Model 3 and Model Y units. These two models also accounted for the bulk of deliveries, 373,728 in total. The remaining 10,394 deliveries came from the company’s other models, including the Cybertruck, which has now been recalled eight times since its launch in November 2023.

Tesla's woes have deepened as latest production and deliveries figures showed a greater fall than expected 📉 https://t.co/JWxn5XdRmh

— Sky News (@SkyNews) July 3, 2025

Despite the decline, some analysts viewed the numbers more positively than expected. Independent estimates had predicted deliveries as low as 356,000. Deepwater Asset Management’s Gene Munster noted the results were 4% higher than the market’s “whisper” number and speculated this could mark a turning point for Tesla.

Elon Musk Retreats from Politics

The disappointing results come amid heightened scrutiny of CEO Elon Musk, who has exited his formal role in the TRUMP administration’s Department of Government Efficiency (DOGE). Musk had been heavily involved in politics, leading initiatives to slash government regulation, but growing dissatisfaction with Tesla’s performance led him back to the company.

His outspoken criticism of a multitrillion-dollar tax-and-spending bill supported by President Trump has resulted in strained relations. Trump responded by threatening to pull subsidies from Musk’s companies, including Tesla and SpaceX, and even suggested deportation.

Headwinds from Competition and Policy Risks

Tesla continues to face pressure from affordable EV makers in China and across Asia. Analysts say the company’s declining U.S. automotive sales reflect customers waiting for refreshed models like the updated Model Y SUV, which started shipping in March.

Beyond competition, political backlash and protests have dented Tesla’s reputation, impacting both showroom traffic and brand image. Tesla’s Q1 profits fell 71% to $409 million, with revenue down 9% to $19.3 billion.

Energy Innovation estimates the tax bill Musk opposes could slash EV sales by 100,000 vehicles annually by 2035, with implications for Tesla’s solar and battery businesses.

Q2 Earnings on July 23

Tesla’s second-quarter financial results will be released on July 23, 2025, after market close. Investors will be watching closely to see if margins and revenue can stabilize or if production and political turmoil continue to weigh on the EV leader.