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lite.cnn.com - on gopher - inofficial |
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ARTICLE VIEW: |
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Tesla reports record sales plunge from last year |
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By Chris Isidore, CNN |
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Updated: |
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11:27 AM EDT, Wed July 2, 2025 |
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Source: CNN |
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Tesla reported another record sales plunge Wednesday, as brand damage |
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from CEO Elon Musk’s political activities and increased competition |
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continued to batter the once fast-growing electric car maker. |
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Tesla reported it sold 384,122 cars in the quarter, down nearly 60,000 |
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cars, or 13.5% from the sales total a year ago. That marks the largest |
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year-over-year drop in sales in the company’s history. However, that |
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number is up 14.1% from its first quarter total. |
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Despite the sales drop, shares of Tesla () opened up nearly 4% in |
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Wednesday trading following the report. That’s because it exceeded |
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some analyst forecasts for a much larger plummet. |
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Musk’s political activities, especially his role in the Trump |
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administration, have prompted widespread protests at Tesla showrooms |
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across the United States and Europe, along with some instances of |
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vandalism against its vehicles and facilities. The company does not |
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break down its sales by region, but registration data has suggested |
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that both US and European sales have fallen sharply. That came despite |
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sales of electric vehicles (EVs) increasing overall in both markets. |
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The company also faces increased competition, not just from legacy |
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Western automakers, but also from Chinese automakers. The latter has |
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hurt Tesla’s sales in China, the largest market for both EV and auto |
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sales and Tesla’s second largest market. |
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Notably, Tesla is poised to lose its title for the world’s largest EV |
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maker, based on annual sales, to Chinese automaker BYD, even though BYD |
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has not entered the US market. Earlier on Wednesday, BYD reported it |
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had sold 1 million electric vehicles in the first half of this year, |
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putting it far ahead of Tesla’s year-to-date total of sales of about |
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721,000. |
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For most of its history, Tesla has experienced strong gains in |
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year-over-year sales, which has helped lift shares. That has made Tesla |
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the world’s most valuable automaker, despite having a fraction of the |
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overall sales of legacy automakers. |
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But Wednesday’s report marks the second straight quarter of declines |
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for the company, with sales dropping at least 13%. This follows its |
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first annual decline last year. Before 2024, the company had logged |
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only one quarterly drop – in 2020, when the pandemic shutdown |
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factories and disrupted sales. |
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Tesla shares have seen big swings over the past half a year. They |
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nearly doubled from election day to hit record levels in mid-December |
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due to investor expectations the company would benefit from Musk’s |
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ties to President Donald Trump. But it soon lost all of those gains and |
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more, falling more than 50% by mid-April. |
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Since then, shares have started to recover. First shares rose after |
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Musk announced in April that he would be leaving the Trump |
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administration to focus to Tesla, and then on news of its long-promised |
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rollout of a robotaxi service. That helped to lift Tesla shares 35% |
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from its low in April through Tuesday’s close. |
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This story has been updated with additional reporting and context. |
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