Tesla faces second straight year of falling sales after another bad quarter

Tesla reported a weak second quarter in 2025, delivering 384,122 vehicles, marking a 13.5% decline compared to the same period in 2024. This continued downturn raises concerns that Tesla’s total sales for 2025 may fall below those of 2024, potentially resulting in two consecutive years of declining sales—a significant shift from the company’s previous trajectory of 50% annual delivery growth. The quarter’s sales were only marginally better than Tesla’s worst recent quarter in Q1 2025, which CEO Elon Musk attributed partly to production line shutdowns for new model launches. However, no major production pauses occurred in Q2, although some staff on the Model Y and Cybertruck lines were reportedly asked to stay home briefly in late May. Additional company developments include Musk’s increased focus on Tesla after reducing his involvement in the Trump administration, following nationwide protests against Tesla. Musk recently fired Omead Afshar, Tesla’s VP overseeing manufacturing and sales in the U