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Tesla Faces Sales Decline and Industry Struggles in 2025

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Hey there, tech lovers! Today, let’s talk about Tesla’s recent sales figures and the tough road the electric vehicle (EV) industry is navigating this year.

In the second quarter of 2025, Tesla delivered 384,122 cars, marking another sluggish quarter. This is a 13.5% drop compared to the same period in 2022, hinting that Tesla might underperform its 2024 total sales. The numbers barely improved from the previous quarter, which was its worst in over two years.

This dip comes after Elon Musk’s startup phase working with the Trump administration, which caused some factory shutdowns for the Model Y upgrade. While no major shutdowns happened in Q2, reports suggest some staff were asked to stay home around late May. Tesla will detail its financial results on July 23.

Musk recently fired Omead Afshar, who managed sales and manufacturing, signaling a major shift. Musk is now focusing more on Tesla once again, even taking over sales operations in Europe and the U.S. Meanwhile, Tesla has launched a limited Robotaxi service in Austin, Texas.

Other automakers have also stumbled with EV sales, like Ford seeing a 31% decline in the U.S., and Hyundai and Kia experiencing drops as well. Conversely, General Motors increased its EV sales through new models, shaking up the industry.

To boost sales, Tesla has cut prices aggressively worldwide and introduced minor upgrades, especially for its Model Y. Elon Musk has also hinted that more affordable models, similar to stripped-down versions of the Model 3 and Y, are in the pipeline—though details about their production are still unclear.

Historically, Tesla aimed for 50% annual growth but now seems to be facing obstacles. The company previously planned a $25,000 EV on a next-gen platform, but Musk has abandoned that project for now.

Stay tuned as Tesla’s upcoming earnings report will shed more light on how the company is navigating this challenging phase—and whether affordable EVs will finally roll out this year.

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Written by Nuked

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