Tesla saw its sales fall to a three-year low as the electric car maker continues to suffer from Elon Musk’s political views.
Customer deliveries fell by 14 per cent in the second quarter of the year, marking one of the company’s biggest ever year-over-year declines.
Analysts have attributed the drop in demand for Tesla vehicles to Mr Musk’s allegiance to US President Donald Trump, which has seen the company’s share price drop by more than a quarter since he took office.
There have been dozens of protests at Tesla dealerships in the US over Mr Musk’s association with the Trump administration, while the tech billionaire’s backing of far-right politicians in Europe has also prompted boycotts of the brand.
“Tesla continues to face persistent headwinds in key markets, particularly in China and Europe, where sales have softened due to intensifying competition and growing concerns over brand reputation,” Liz Lee, an associate director at Counterpoint Research, told The Independent.
“In parts of Europe, the political backlash associated with Elon Musk has further dampened demand, prompting localised boycotts.”
Tesla’s CyberTruck, often referred to as the ‘MagaMobile’ due to the type of customers it typically attracts, recorded roughly 5,000 sales between April and June, despite the automaker planning for a production capacity of over 250,000 units per year.
The Tesla boss has seen his relationship with Mr Trump turn sour in recent weeks, having stepped down from his role at the White House and criticised the US president’s “big beautiful bill”.
Mr Musk described the legislation last month as a “disgusting abomination” for adding to the growing US deficit, while also cutting incentives for electric cars.
The feud between the two continued this week, with Mr Trump claiming that Mr Musk has received more government subsidies “than any human being in history”. He also hinted that Tesla and Mr Musk’s other companies should be reviewed by the Department of Government Efficiency (DOGE).
Tesla’s closest rival, the Chinese car manufacturer BYD, saw its sales hit a new high in June.
A 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.
Tesla, which outsold BYD as recently as last year, has only managed 720,803 sales in the first six months of the year.
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