Tesla sales slump as electric carmaker faces 2nd year of falling sales
Sales of Tesla vehicles fell sharply in the last three months, plunging 13 per cent in the second quarter over a year earlier.
The electric automaker now needs to deliver more than one million vehicles in the typically strong second half to avoid another annual sales decline. Analysts say it's a difficult task given tariff-driven economic uncertainty and threats to phase out key EV incentives under the Trump administration's sweeping tax bill, including a $7,500 US credit on new sales and leases.
Tesla sales fell to 384,122 in April through June, down from 443,956 in the same three months last year. During the latest period, Musk formally left the Trump administration as a cost-cutting czar, and hopes rose that sales would recover.
Worldwide protests at Tesla showrooms in opposition to Musk's prominent position in American politics also began in March and some have continued to pop up in the months following.
Musk recently said that Tesla was in the midst of a "major rebound" in sales.
Still, some parts of the report were encouraging, according to analysts. Sales of the Models 3 and Y totalled 373,728, above the estimate of 356,000 from Wall Street analysts. Tesla shares rose 4.6 per cent in afternoon trading.
"The numbers weren't as bad as thought with all the analyst forecast cuts we saw over the past week," said Morningstar's Seth Goldstein, though he added the report overall showed the company faces big challenges. "The current product lineup is at market saturation and Tesla will need the new affordable vehicle to grow deliveries."
Possible growth in 2nd half of 2025
Sandeep Rao, a senior researcher at Leverage Shares, was also cautiously optimistic.
"While overall deliveries are still down year-over-year, the rate of decline has slowed significantly, indicating a possible bottoming out and even the potential for growth in the second half of the year," said Rao.
While Tesla has leaned on offers such as low-cost financing to boost demand, it has yet to roll out long-promised cheaper models in a market where snazzy and feature-packed EVs from Chinese rivals have been winning over buyers.
Will Donald Trump and Elon Musk destroy each other? | About That
22 days ago
Duration 15:38
How did two of the most powerful men on the planet — Donald Trump and Elon Musk — go from friends to foes embroiled in a public meltdown? Andrew Chang explains what drove a wedge between them and why it may be in their best interests to reconcile sooner rather than later. Images provided by Getty Images, The Canadian Press and Reuters. (Additional credits: 4:35 - MSNBC/YouTube; 4:37 - CNN/YouTube; 4:29 - CBS News/YouTube)
Tesla had said it would start producing a cheaper vehicle — expected to be a pared-down Model Y — by the end of June, but Reuters reported in April it was delayed by at least a few months.
The row between Musk and Trump isn't over, either — and it's unclear how that could impact Tesla's finances. After Musk once again took to social media to criticize the budget bill Trump is trying to pass, the president threatened Tuesday to use the power of his office to hurt his companies, including Tesla, pushing its stock down more than five per cent.
The new figures come as Tesla is focusing less on new models and more on robots, self-driving technology and robotaxis. Tesla is in the midst of a test run of robotaxis in Austin, Texas, which has drawn the scrutiny of federal car safety regulators because of a few mishaps, including one case in which a Tesla cab was shown on a video heading down an opposing lane.
The competition from rival EV makers is especially fierce in Europe, where China's BYD has taken a bite out of its market share. Tesla sales fell 28 per cent in May in 30 European countries, even as the overall market for EVs expanded sharply, according to the European Automobile Manufacturers' Association.
Musk has acknowledged that his work as head of the Department of Government Efficiency (DOGE) and his embrace of European far-right candidates have hurt the company. But he attributed much of the sales plunge to customers holding off while they waited for new versions of Tesla's best-selling Model Y.
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Cytisinicline is a plant-based alkaloid with a high binding affinity to the nicotinic acetylcholine receptor. It is believed to aid in treating nicotine addiction for smoking and e-cigarette cessation by interacting with nicotine receptors in the brain, reducing the severity of nicotine craving symptoms, and reducing the reward and satisfaction associated with nicotine products. Cytisinicline is an investigational product candidate being developed as a treatment of nicotine dependence for smoking cessation and has not been approved by the Food and Drug Administration for any indication in the United States. About Omnicom Group Inc. Omnicom Group Inc. (NYSE: OMC) ( is a leading global marketing and corporate communications company. 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For more information on Ketchum, a part of Omnicom PR Group, visit Forward Looking Statements This press release contains forward-looking statements within the meaning of the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the timing and nature of cytisinicline clinical development and regulatory review and approval, data results and commercialization activities, the potential market size for cytisinicline, the potential benefits, efficacy, safety and tolerability of cytisinicline, the development and effectiveness of new treatments, and the successful commercialization of cytisinicline. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. 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These statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including, among others, the risk that cytisinicline may not demonstrate the hypothesized or expected benefits; the risk that Achieve may not be able to obtain additional financing to fund the development and commercialization of cytisinicline; the risk that cytisinicline will not receive regulatory approval in a timely manner or at all, or be successfully commercialized; the risk that new developments in the smoking and vaping cessation landscapes require changes in business strategy or clinical development plans; the risk that Achieve's intellectual property may not be adequately protected; general business and economic conditions; risks related to the impact on our business of macroeconomic and geopolitical conditions, including fluctuating inflation, interest and tariff rates, volatility in the debt and equity markets, actual or perceived instability in the global banking system, global health crises and pandemics and geopolitical conflict and the other factors described in the risk factors set forth in Achieve's filings with the Securities and Exchange Commission from time to time, including Achieve's Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Achieve undertakes no obligation to update the forward-looking statements contained herein or to reflect events or circumstances occurring after the date hereof, other than as may be required by applicable. Achieve Contact Nicole Jones ir@ 425-686-1510 References 1 VanFrank B, Malarcher A, Cornelius ME, Schecter A, Jamal A, Tynan M. Adult Smoking Cessation — United States, 2022. MMWR Morb Mortal Wkly Rep 2024;73:633–641. 2 World Health Organization. WHO Report on the Global Tobacco Epidemic, 2019. Geneva: World Health Organization, 2017. 3 U.S. Department of Health and Human Services. The Health Consequences of Smoking – 50 Years of Progress. A Report of the Surgeon General, 2014. 4 Vahratian A, Briones EM, Jamal A, Marynak KL. Electronic cigarette use among adults in the United States, 2019–2023. NCHS Data Brief, no 524. Hyattsville, MD: National Center for Health Statistics. 2025. DOI: 10.15620/cdc/174583. 5 Jamal A, Park-Lee E, Birdsey J, et al. Tobacco Product Use Among Middle and High School Students — National Youth Tobacco Survey, United States, 2024. MMWR Morb Mortal Wkly Rep 2024;73:917–924.
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