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Electric vehicles

Tesla Sales Plummet to Three-Year Low Amidst Elon Musk's Association with Trump Administration

Strategic Insights

— 2 min read

The electric car maker is facing a significant downturn in demand, with customer deliveries falling by 14% in the second quarter of the year. Analysts attribute the decline to Elon Musk's allegiance to the Trump administration, which has led to protests and boycotts at Tesla dealerships in the US and Europe. The tech billionaire's association with far-right politicians has also damaged the company's brand reputation.

Key Takeaways:

  • Tesla's sales dropped to a three-year low in the second quarter of the year, with customer deliveries falling by 14% compared to the same period last year.
  • Analysts attribute the decline to Elon Musk's allegiance to the Trump administration, which has led to protests and boycotts at Tesla dealerships in the US and Europe.
  • The company's share price has dropped by more than a quarter since Elon Musk took office, reflecting the damage to Tesla's brand reputation.
  • The Tesla CyberTruck, also known as the "MagaMobile", recorded only 5,000 sales between April and June, despite a planned production capacity of over 250,000 units per year.
  • Elon Musk has seen his relationship with Donald Trump turn sour in recent weeks, having criticized the US president's "big beautiful bill" and stepped down from his role at the White House.
  • BYD, Tesla's closest rival, saw its sales hit a new high in June, with over 1 million electric vehicles sold in the first six months of the year.
  • Tesla's sales of 720,803 units in the first six months of the year are significantly lower than BYD's first-half sales.
  • The regulatory filing posted to the Hong Kong stock exchange on Wednesday revealed that BYD's electric vehicle sales have already topped 1 million in 2025.
  • The feud between Elon Musk and Donald Trump continued this week, with the US president hinting that Tesla and other companies should be reviewed by the Department of Government Efficiency (DOGE).

Statistics:

  • Tesla's customer deliveries fell by 14% in the second quarter of the year.
  • The company's share price dropped by over 25% since Elon Musk took office.
  • The Tesla CyberTruck recorded 5,000 sales between April and June.
  • BYD's electric vehicle sales have already topped 1 million in 2025.
  • Tesla's sales in the first six months of the year reached 720,803 units.
  • BYD's sales in the first six months of the year exceeded 1 million units.

Sources:

  • The Independent: Liz Lee, Associate Director at Counterpoint Research
  • Regulatory filing posted to the Hong Kong stock exchange on Wednesday
  • CAPTION(S): Credit: Sean Gallup/Getty Images

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