In spite of the improvements Tesla made to some of its best models, the company has reported a year-over-year decline in worldwide car deliveries for the second quarter of 2025. The US EV company sold 384,122 units in the three months ending in June, which represents a 14% increase over Q1 2025 but a 13.5% fall when compared to the same period in 2024.

The year-on-year decrease points to increasing challenges for Tesla in maintaining its speed despite increased competition and internal unrest, even if the Q2 results show sequential growth.

The Model 3 and Model Y are the most popular models.

The majority of Tesla's Q2 results came from its mass-market models: the Model 3 sedan and Model Y SUV. Both models accounted for 373,728 deliveries, or 97.3% of all sales worldwide. From the 95.2% of Tesla's sales mix that they represented in Q2 2024, this was a rise in their total contribution.

The more expensive Tesla vehicles, such as the Model S, Model X, Cybertruck, and Semi, are grouped under an "other models" category. Compared to the 21,551 units sold in the same quarter of the previous year, those represented only 10,394 units in Q2 2025, a significant decrease.

Despite the new Model Y's global rollout, its impact on sales seems to have been limited so far. Deliveries are still limited in terms of high-end and specialized vehicle manufacturing (such as Cybertruck and Semi) because of production limits or a somewhat lukewarm market for specialized goods.

Sales were lower in the first half of the year compared to the previous year.

In total, Tesla produced 720,803 vehicles in the first half of 2025, which is less than the 830,776 units that were manufactured in the first half of 2024. Tesla's record quarterly sales of about half a million vehicles in Q4 2024 are followed by this decline.

public mood and headwinds from China

Increasing competition in international markets also puts Tesla's performance to the test. At similar pricing, Chinese automakers like BYD are introducing competitive electric vehicles and growing rapidly. For instance, out of a total of 1.12 million new energy cars, BYD produced 606,933 BEVs during the same quarter.

In addition, Tesla has reputational challenges. The company's brand image and investor mood have been negatively impacted by CEO Elon Musk's public political activity, such as his brief affiliation with Donald Trump's administration.

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