Tesla's Q2 Sales Mixed: US Boost, Europe Slump
Tesla's sales have seen a mixed bag of results in recent months. While the company experienced a 7.4 percent year-on-year increase in electric car deliveries to 497,099 vehicles in the last quarter, it also faced a significant decline in European sales and a 13 percent drop in sales during the first half of the year. Meanwhile, Elon Musk has taken over personal supervision of production and sales in Europe following Omead Afshar's departure.
The increase in sales in the last quarter was likely driven by US buyers taking advantage of the $7,500 tax credit before it expired. However, Tesla's sales had fallen by around 13 percent in the first two quarters of the year, partly due to the transition phase of the Model Y and controversies surrounding Elon Musk's political activities. Despite this, Tesla built around 447,410 cars of all models in the last quarter, about 4.8 percent fewer than a year ago.
Tesla faces increased competition in the electric car market and has seen a decrease in sales of its Cybertruck. Elon Musk expects 'tough quarters' ahead for Tesla's car sales, as the company focuses on robotaxis and humanoid robots. In Europe, Tesla's plant in Gruenheide near Berlin has faced challenges, with deliveries dropping by 23 percent in August 2025 and a 32.6 percent decrease over the first eight months of the year. However, a recent weekly increase suggests a possible recovery due to better availability of the updated Model Y. Overall, Tesla is expected to deliver about 1.61 million vehicles globally in 2025, which is around 10 percent less than in 2024.
Tesla's share of the EU car market has fallen to 1.2 percent, with registrations in August down by 36.6 percent year-on-year. Despite these challenges, Tesla remains a significant player in the global electric vehicle market, and its long-term strategies continue to evolve, focusing on robotaxis and humanoid robots.
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