Tesla Global Sales Drop 13.5% Amid EV Market Slowdown and Musk Backlash

Tesla has reported a second consecutive drop in global vehicle sales, adding further pressure on the electric vehicle (EV) pioneer as it navigates a rapidly shifting market and a wave of backlash linked to CEO Elon Musk’s political actions.

The US-based carmaker delivered 384,122 vehicles in the second quarter of 2025, marking a 13.5% year-on-year decline. While the numbers were in line with Wall Street expectations, they confirm a turbulent phase for Tesla amid growing competition, regulatory uncertainty, and waning EV enthusiasm in some markets.

Tesla’s results mirror broader challenges across the EV industry. Swedish automaker Volvo announced a 26% drop in its fully electric sales in June, while US-based Rivian saw a 22.7% decline compared to the same period last year.

Market Competition Heats Up

Tesla’s early dominance in the EV sector is now being tested by aggressive rivals from China, such as BYD, as well as legacy automakers like General Motors, Toyota, and Volkswagen all investing heavily in electrification. Analysts note that price wars, reduced consumer incentives, and uncertainty around tariffs particularly in the United States have tempered buyer enthusiasm.

The phase-out of the US federal EV tax credit is further complicating sales forecasts across the sector.

Political Storm Around Musk

Adding to the strain is Elon Musk’s increasingly visible role in political advocacy, which has sparked both public backlash and investor unease. Musk has faced criticism for supporting right-wing political causes and figures, including a now-public donation of over $270 million to former US President Donald Trump’s re-election campaign.

Though Musk and Trump have since clashed over economic policy particularly Trump’s sweeping "Big Beautiful Bill" the political entanglement has left Tesla vulnerable to boycott campaigns and regulatory scrutiny. After President Trump called for a review of federal subsidies linked to Musk’s business ventures, Tesla’s stock fell sharply, closing down 5.3% on Tuesday.

Hope on the Horizon?

Despite the turbulence, some analysts remain cautiously optimistic. Production of Tesla’s top-selling Model Y and Model 3 increased in the second quarter to 396,835 units up from 345,454 in Q1.

“We believe Tesla is on a path to accelerated growth over the coming years,” said Dan Ives of Wedbush Securities. He pointed to a refreshed Model Y and new features rolling out in late 2025 as potential catalysts for recovery.

Tesla is also betting big on autonomous technology, with pilot robotaxi services already being tested in Austin, Texas. The initiative has drawn both praise and federal scrutiny following minor safety incidents, including one viral video showing a Tesla robotaxi entering oncoming traffic.

Musk, who now heads the Department of Government Efficiency, has admitted his political presence may be impacting the brand but insists the dip in sales is largely due to buyers waiting for new vehicle releases.

As of Wednesday morning in New York, Tesla shares had recovered slightly, up 4.73% on the day—though the stock remains 3.02% lower over the past five days.

Africa’s EV Outlook

While Tesla does not yet have a strong manufacturing or sales footprint in Africa, the continent’s growing interest in renewable energy and sustainable transport could become a key market in the years ahead—especially as global players look to diversify supply chains and open new growth avenues.


By WafricNews Business Desk.