Sales of Tesla electric vehicles fell by 13% in the April–June quarter as the company faces continued backlash tied to Elon Musk’s political activities, leading to weakened demand for the automaker’s Models 3 and Y.
Tesla reported delivering 384,122 vehicles during the quarter, down from 443,956 in the same period last year, marking the first year-on-year decline in global deliveries. While the deliveries slightly exceeded analysts’ expectations, they highlight ongoing challenges in the market as consumer sentiment around Musk’s public profile continues to affect brand perception.
Analysts suggest that the decline reflects a combination of intensified competition in the electric vehicle sector and consumer boycotts connected to Musk’s political statements and affiliations. Tesla’s net income dropped by 71% in the first quarter, and despite efforts to stabilize production and pricing strategies, the company continues to face headwinds as it navigates shifting market dynamics.
Despite the drop in sales, Tesla’s stock experienced a modest rise in pre-market trading, indicating cautious optimism among investors anticipating a gradual recovery in the electric vehicle market. Tesla has announced plans to increase production in the coming months while addressing competitive and consumer challenges.
With input from AP News.
