Tesla’s second-quarter vehicle deliveries have experienced a significant slide, with the company reporting 384,122 units delivered. This marks a 13.5% reduction from the 443,956 units delivered in the same period last year, putting Tesla on course for its second consecutive annual sales decrease.
The downturn is largely attributed to the cost of controversy surrounding CEO Elon Musk’s political stances and a perceived lack of innovation in its vehicle lineup. These issues are seen as directly impacting consumer demand, even as the global EV market continues its growth trajectory.
The financial markets have reacted with concern, as Tesla’s stock has shed 25% of its value this year. Investors are particularly apprehensive about brand damage in key European and US markets, where Musk’s political affiliations and his past role in the Trump administration are believed to be alienating consumers. The public fallout between Musk and Trump in early June, which resulted in a significant $150 billion loss in Tesla’s market value, underscores the volatility surrounding the CEO’s public persona.
While a refresh of the Model Y aimed to boost demand, it unintentionally caused production halts and prompted some buyers to delay their purchases. Despite Musk’s previous optimistic statements, Wall Street analysts largely expect a second consecutive annual sales decline for Tesla. Achieving Musk’s ambitious target of delivering over a million units in the second half of the year is considered a formidable and improbable challenge.