Tesla Q2 sales drop 13% amid lingering backlash over Elon Musk’s political views

Tesla’s global vehicle sales declined 13% in the April–June quarter of 2025, highlighting the ongoing impact of public disapproval toward CEO Elon Musk’s political affiliations. Despite hopes that consumer sentiment would shift, the dip underscores a continued reluctance among some buyers, particularly in reaction to Musk’s alignment with former U.S. President Donald Trump and far-right European leaders.

The EV maker sold 384,122 vehicles in the second quarter, down from 443,956 units during the same period last year. The decline comes even as Tesla beat analyst expectations on some fronts — sales of the popular Model 3 and Model Y reached 373,728 units, surpassing Wall Street’s estimate of 356,000.

This performance has raised fresh concerns about Tesla's upcoming Q2 earnings report, expected later this month. In Q1, Tesla reported a staggering 71% drop in net profit, and these latest figures suggest the company could face another challenging quarter.

Interestingly, the sales figures emerged shortly after Musk formally exited his advisory role under the Trump administration, which had sparked hopes of a brand reset. Yet, early market response was mildly optimistic — Tesla shares rose around 4% in premarket trading.

As brand loyalty gets tested and political positioning continues to influence buying behaviour, analysts suggest Tesla’s long-term market performance may hinge as much on public perception as on product innovation.