The Tesla Model Y and Model 3 contributed to about 97 per cent of total sales for the carmaker globally
Tesla has announced a year-on-year fall in global vehicle deliveries for the second quarter of 2025, even as it launched improvements to some of its flagship models. In the three months ending June, the US EV manufacturer sold 384,122 vehicles, a 14 per cent rise over Q1 2025 but a 13.5 per cent decline versus the same period in 2024.
Although the Q2 performance indicates sequential growth, the year-on-year decline suggests accelerating difficulties for Tesla to maintain its pace despite higher competition and internal turmoil.
Most of Tesla’s Q2 results were contributed by its mass-market models—the Model 3 sedan and Model Y SUV. Both models represented 373,728 deliveries, or 97.3 per cent of global total sales. This was an increase in their combined contribution from Q2 2024, when they represented 95.2 per cent of Tesla’s sales mix.
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Tesla classifies its pricier models—the Model S, Model X, Cybertruck, and Semi—under an “other models” category. Those represented only 10,394 units in Q2 2025, which is significantly lower compared to 21,551 units sold during the same period last year.
In spite of the worldwide rollout of the new Model Y, its contribution to sales appears to be contained thus far. In terms of the production of high-end and specialty vehicles (i.e., Cybertruck and Semi), deliveries are still muted, either due to production caps or a relatively lukewarm appetite for specialty products.
First-half sales trailing previous year
Cumulatively, Tesla delivered 720,803 vehicles through the first half of 2025, which lags the 830,776 units that were delivered in the first half of 2024. This downward trend comes after Tesla achieved record quarterly sales of nearly half a million units in Q4 2024.
Headwinds from China and public sentiment
Tesla’s performance is also tested by rising competition in global markets. Chinese automakers such as BYD are quickly expanding, launching competitive electric vehicles at comparable price points. BYD itself, for example, produced 606,933 BEVs during the same quarter, out of a total of 1.12 million new-energy vehicles.
Moreover, Tesla also maintains reputational woes. CEO Elon Musk’s public political involvement, such as his brief alignment with Donald Trump’s presidency, has affected investor sentiment and brand image.
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First Published Date: 08 Jul 2025, 19:00 pm IST
