In charts: How Elon Musk oversaw Tesla’s historic decline | EUROtoday

Tesla has bucked business developments by recording a second straight drop in gross sales amid a booming electrical automobile market.

The firm reported on Wednesday that buyer deliveries had fallen by 14 per cent within the second quarter of the yr, marking the worst quarterly decline in Tesla’s historical past.

It adopted a 13 per cent year-on-year dip within the first quarter of 2025 for the as soon as all-conquering electrical automobile maker, which has now misplaced its result in Chinese rival BYD when it comes to EV gross sales.

Market analyst Liz Lee, who serves as an affiliate director at Checkpoint Research, blames Tesla’s decline on a mixture of elevated competitors and rising considerations over model fame.

Tesla CEO Elon Musk’s involvement in Donald Trump’s administration between late January and May resulted in protests and boycotts all through the US and Europe, turning some potential and present prospects in the direction of different manufacturers.

“As a result, we expect Tesla’s global electric vehicle sales to decline by 10 per cent year-on-year in 2025,” she informed The Independentincluding that she anticipated BYD to see buyer deliveries proceed to extend.

“We expect BYD’s global EV sales to grow by 45 per cent year-on-year in 2025, to reach a record high and significantly outpace most legacy peers.”

Trump and Musk’s relationship has damaged down in current weeks, although Musk’s continued help of far-right politicians in Europe continues to taint the corporate for a lot of EV lovers.

Tesla noticed its gross sales plummet all through Europe between January and March this yr, with the UK providing the one signal of development. This anomaly was addressed in April, as UK gross sales shot down by 62 per cent from the earlier April.

BYD’s optimistic trajectory is extra reflective of the broader market, with demand for electrical autos hitting file highs in 2024.

Data from the International Energy Agency (IEA) and OurWorldinData present that international gross sales of combustion engine vehicles seem to have already peaked, with electrical vehicles making up 22 per cent of all new vehicles bought worldwide in 2024.

This determine is up from simply 2.6 per cent in 2019, with gross sales of non-electric vehicles reducing by 20 per cent over that very same five-year interval.

Tesla’s falling gross sales have impacted income, which have been down 71 per cent within the first quarter of the yr in comparison with the identical interval final yr.

It was the third consecutive drop in internet revenue for Tesla, tumbling from $3.3 billion within the first quarter of 2022, to $409 million within the first quarter of 2025.

The earnings for the second quarter are set to be introduced on 23 July, although expectations are as soon as once more low following the dip in gross sales.

Musk’s allegiance with Trump noticed Tesla’s share worth collapse within the months following the US president’s inauguration, earlier than a quick restoration after the tech billionaire left his position as the top of the Department of Government Efficiency (DOGE).

Poor gross sales figures, along with threats from Trump to chop incentives for electrical vehicles, has seen the share worth start to slip once more.

As Tesla’s largest shareholder, Musk’s wealth is intrinsically tied to the fortunes of the electrical automobile firm.

The world’s richest particular person has seen greater than $100 billion wiped from his internet value in 2025, mirroring the trajectory of Tesla’s share worth.