New york: US-based electric car manufacturer Tesla experienced a 13.5% decline in vehicle deliveries during the second quarter of the year, as reported by the company on Wednesday. The deliveries dropped to 384,122 units from 443,956 during the same period last year, marking the second consecutive quarterly decrease this year.
According to Anadolu Agency, Tesla also saw a slight decrease in vehicle production, with numbers falling to 410,244 units from 410,831 in the previous year. The company’s stock has fallen approximately 26% this year, as of Tuesday’s close, positioning it as the worst performer among the “Magnificent Seven” stocks and reducing its market capitalization to below $1 trillion.
The company is facing increasing competition from Chinese electric vehicle manufacturers, which are offering newer and more affordable models. Additionally, CEO Elon Musk is dealing with political backlash, as anti-Tesla rallies have harmed the company’s image and sales. Musk was a significant financial supporter of President Donald Trump during the latest US presidential election and led the Trump administration’s Department of Government Efficiency (DOGE) initiative aimed at reducing the size and capabilities of federal agencies, including those overseeing his companies.
The relationship between Trump and Musk deteriorated when Musk criticized the “big, beautiful bill” for potentially increasing the US budget deficit. This week, Trump retaliated by suggesting that Musk might “head back home to South Africa” if federal subsidies for electric vehicles are cut. The president also mentioned potential deportation and an investigation by DOGE into the subsidies received by Musk’s companies.