Tesla is expected to report another drop in quarterly vehicle deliveries on Wednesday, as political backlash and growing competition continue to impact demand.
The company is estimated to have delivered 394,380 vehicles in the second quarter, down more than 11% from a year ago. This follows a 13% decline in the first quarter.
Tesla attributed earlier delivery issues to production pauses for a refreshed Model Y, but analysts say the update has not significantly boosted demand.
Buyers in Europe and China have turned to cheaper or newer models from competitors. In Europe, Tesla sales fell for the sixth straight month in countries like France, Sweden, Denmark, and Italy.
In Denmark, registrations dropped by 61.6% in June. France saw a 10% fall, while Italy’s drop reached 66%, even as overall EV sales rose.
Tesla’s market share in China fell to 7.6% in the first five months of 2025, down from 10% last year. The launch of Xiaomi’s YU7 SUV has increased pressure, raising expectations that Tesla may need to lower prices.
Some gains were seen in smaller European markets. In Norway, Tesla registrations rose 54% in June, driven by the new Model Y. In Spain, sales increased 60.7%, and in Portugal, they rose 7.3%.
Despite these improvements, Tesla’s overall performance in Europe remains weak. The company has not released a new mainstream model since 2020, while other automakers have expanded their EV offerings.
CEO Elon Musk’s public political views and ties to former President Donald Trump have sparked protests and may have further impacted consumer sentiment in Europe.
To reach Musk’s target of returning to growth this year, Tesla would need to deliver more than a million vehicles in the second half — a record pace. A lower-priced Model Y is expected to enter production soon, though reports suggest delays.
Tesla shares fell 5.3% in afternoon trading as investors weighed the latest delivery and market data.
