By Bernard Condon, AP Business Writer
NEW YORK (AP) – Tesla electric vehicle sales have fallen sharply over the past three months as boycotts over Elon Musk’s political views continue to alienate buyers.
A year ago, 13% sales suggest that mask embraces against US President Donald Trump and far-right European politicians had a deep and lasting impact on Tesla’s brand appeal. New figures reported by Tesla on Wednesday show rival electric vehicle manufacturers are not struggling with the company’s weaknesses to steal market share, and Tesla’s quarterly revenue report later this month could also be disappointing.
From April to June, sales fell to 384,122, down from 443,956 in the same three months last year. In the latest period, Musk officially hopes that the Trump administration will leave as the cost-cutting emperor, with sales rebounding. Musk himself recently said that Tesla is in the middle of a “major rebound” for sale.
Still, some of the reports were encouraging. The Model 3 and Y sold 373,728, surpassing the estimated 356,000 from Wall Street analysts. Tesla shares rose 4.6% in afternoon trading.
“Last week, all analyst forecast cuts weren’t as bad as not thought of as all analyst forecast cuts,” said Seth Goldstein of Morningstar, but he added that the report has shown a major challenge overall. “The current product lineup is a market saturation and Tesla needs new, affordable vehicles to grow its delivery.”
Musk has pledged to promote sales this year by cheaper EV models.
It is not yet clear whether Musk’s latest feud with Trump will help attract back buyers who are upset by the billionaire political stance. After Musk took him to social media again to criticize Trump’s budget bill, the president on Tuesday threatened to use the power of his office to hurt his company, including Tesla, pushing its inventory down more than 5%.
The new guy is not focused on the new model, so even if there are no one riding robots, autonomous driving technology, or Robotaxis Ferry, there are no one behind the wheel.
Tesla was in the middle of a test run at Robotaxis in Austin, Texas, and it seems to have gone smooth for the most part. But it also elicited scrutiny from federal motor vehicle safety regulators due to several accidents. This includes one case with a Tesla cab displayed on a video facing the opposite lane.
Competition with rival EV manufacturers is particularly intense in Europe, when China’s BYD has been bitten by market share. According to the European Association of Auto Manufacturers, Tesla sales fell 28% in May in May, despite a sharp expansion in the overall electric vehicle market.
Musk acknowledges that his work as the government’s efficiency director and embrace of a far-right candidate in Europe hurts the company. However, he attributed it to much of the sales being suppressed while awaiting a new version of Tesla’s bestselling model Y.
Tesla reported its second quarter financial results on July 23rd. In the first quarter, net income fell 71%.
Original issue: July 2, 2025, 11:59am EDT
