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Electric vehicles

Tesla Sales Slump Amid Booming Electric Vehicle Market

Strategic Insights

— 2 min read

The electric vehicle market is experiencing a booming trend, with BYD taking the lead in terms of sales, while Tesla continues to struggle. The company has reported a second straight drop in sales, with a 14% decline in the second quarter of the year. Market analyst Liz Lee attributes this decline to increased competition and growing concerns over Tesla's brand reputation, particularly due to CEO Elon Musk's involvement with Donald Trump's administration and ongoing support for far-right politicians. The decline in sales has impacted profits, with Tesla's net income dropping 71% in the first quarter of the year compared to the same period last year.

Key Takeaways:

  • Tesla reported a 14% decline in customer deliveries in the second quarter of the year, marking the worst quarterly decline in the company's history.
  • Market analyst Liz Lee attributes the decline to increased competition and growing concerns over Tesla's brand reputation, particularly due to Musk's involvement with Trump's administration.
  • Tesla's net income dropped 71% in the first quarter of the year compared to the same period last year, with the earnings for the second quarter set to be announced on 23 July.
  • BYD's global EV sales are expected to grow by 45% year-on-year in 2025, outpacing most legacy peers and significantly outpacing Tesla.
  • Global sales of combustion engine cars appear to have already peaked, with electric cars making up 22% of all new cars sold worldwide in 2024, up from 2.6% in 2019.
  • Sales of non-electric cars decreased by 20% over the same five-year period.
  • Musk's allegiance with Trump saw Tesla's share price collapse in the months following the US president's inauguration, before a brief recovery after Musk left his role as the head of the Department of Government Efficiency.
  • More than $100 billion has been wiped from Musk's net worth in 2025, mirroring the trajectory of Tesla's share price.

Statistics:

  • 14% decline in Tesla's customer deliveries in the second quarter of the year
  • 71% drop in Tesla's net income in the first quarter of the year compared to the same period last year
  • 45% year-on-year growth in BYD's global EV sales in 2025
  • 22% of all new cars sold worldwide in 2024 are electric
  • 2.6% of all new cars sold worldwide in 2019 were electric
  • 20% decrease in sales of non-electric cars over a five-year period
  • More than $100 billion wiped from Musk's net worth in 2025

Sources:

  • The Independent
  • Checkpoint Research
  • International Energy Agency (IEA)
  • OurWorldinData

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