Tesla reported just 384,122 vehicle deliveries in Q2 2025 – a noticeable 14% slide year-on-year, and its steepest decline on record.
While some anticipated turbulence, the results managed to slightly exceed analyst expectations, prompting a surprising 5% climb in the stock.
Tesla YTD chart
So, what’s driving this cooldown in momentum?
🇨🇳 China’s EV powerhouses: BYD alone reportedly registered over 1 million battery-electric sales, outpacing Tesla with fresher and more affordable options.
⏳ Delayed evolution: The promised $25K ‘Model Q’ has yet to appear, leaving Tesla’s aging lineup vulnerable.
⚖️ Demand vs. production imbalance: Tesla built 410,244 cars – more than it sold – indicating inventory build-up.
🗺️ Regional whiplash: European and Chinese demand wavered, though China showed signs of late-quarter recovery.
🧨 CEO controversies: Elon Musk’s high-profile political entanglements, including his stint with the DOGE department and ties to Trump – stirred public backlash and dented brand sentiment.
Still, Wall Street is keeping one eye on Tesla’s future bets: autonomous driving and robotaxis.
Despite the rough quarter, some analysts argue that the dip could mark a cyclical bottom before a strategic pivot.