Tesla reported continued weakness in vehicle deliveries for the second quarter of this year, marking another difficult period for the electric automaker as it struggles to regain momentum. The company delivered a total of 384,122 vehicles during Q2, down 13.5% from the same period in 2024, raising concerns that total yearly sales could decline for the second consecutive year.
Just two years ago, Tesla frequently touted a target annual delivery growth rate of roughly 50%, a figure that now seems distant given recent performances. This latest quarter represents only a modest improvement over Q1, which was Tesla’s weakest sales quarter in over two years. The sluggish sales figures follow an especially turbulent period linked to CEO Elon Musk’s controversial decision to join the Trump administration, a move that spurred widespread “Tesla Takedown” protests nationwide.
Earlier in the year, Musk attributed the poor Q1 numbers partly to the decision to halt production temporarily in order to prepare factories for an upgraded Model Y. However, no similar planned shutdowns occurred during Q2, though some staff working on Model Y and Cybertruck production lines were reportedly asked to temporarily stay home toward the end of May.
The financial repercussions of this slow quarter will become clearer when Tesla releases its full earnings report on July 23. Meanwhile, organizational shake-ups have compounded the uncertainty, highlighted by Musk’s reported dismissal of Omead Afshar, Tesla’s vice president who managed manufacturing and sales operations for both Europe and the U.S.
Since stepping back somewhat from political duties, Musk has vowed renewed attention toward Tesla and his other business ventures. Already, Tesla has initiated a limited rollout of its long-awaited Robotaxi service in Austin, Texas, while Musk himself is expected to personally oversee key sales responsibilities previously managed by Afshar, according to recent reporting.
The coming weeks and earnings report should shed more light on whether these restructuring efforts and increased executive involvement can help reverse Tesla’s concerning downward trend.
