Tesla delivered 384,122 vehicles in the second quarter of this year, closing off an even weaker quarter for the company as it struggles to bring the pace of sales back to its 2023 level.
This represents a 13.5% decline from Tesla’s number delivered in the second quarter of 2022, meaning Tesla could fall below total revenue from 2024.
Sales for the quarter were slightly better than the first quarter, when the company was the worst quarter in more than two years. This was also the first quarter since CEO Elon Musk began working within the Trump administration, launching a nationwide “Tesla Takedown” protest.
Musk repeatedly explained that Tesla’s insufficient first quarter sales was partly due to the closure of production lines at all the company’s factories in preparation for the launch of the upgraded Model Y.
Tesla will reveal the financial impact of the tough quarter on July 23, when it releases its official revenue report on July 23.
Last week, Musk reportedly fired longtime confidant Omead Afshar. With the CEO’s time cut in the Trump administration, he has promised to devote more time to Tesla and his other businesses. Since then, Tesla has launched a limited version of its long-standing Robotaxi service in Austin, Texas, with Bloomberg News reporting that Musk has taken over the Afshar halt.
Other car manufacturers have been struggling to move EVs recently, and Ford announced this week that sales of U.S. electric vehicles fell 31% year-on-year (Tesla figures were due to global sales). General Motors defied this trend and increased U.S. EV sales year-over-year thanks to the new, improved model slate.
Tesla has tapped all the levers it needs to juice its sales over the past two years. It dramatically reduced prices in the US and overseas. We are running multiple low interest rate promotions. Also, all models have undergone minor upgrades, with the Model Y SUV getting one of the most notable facelifts.
The company has teased it in the last few quarters that it is working on “more affordable” models reportedly being something like the ultra-confined Model YS and Model 3 sedan. Although they have pledged to start production earlier this year, the company has not said whether that happened or not. Musk previously abandoned plans to build a $25,000 car on the same next-generation platform that will boost Tesla’s dedicated Robotaxi vehicle, Cybercab.
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