Tesla Sales Drop 13% as Political Backlash Against Musk Continues to Bite

Tesla’s global vehicle deliveries dropped 13% in the second quarter of 2025, with 384,122 units sold from April to June — down from 443,956 a year earlier. The decline comes amid ongoing consumer backlash tied to CEO Elon Musk’s political alignments, particularly his vocal support for Donald Trump and far-right politicians in Europe.

This latest drop comes at a time when many expected the storm to pass. After Musk stepped away from his unofficial role as a Trump campaign advisor earlier this spring, there was hope among Tesla investors that the brand could distance itself from the politics and return its focus to cars. That hasn’t happened. If anything, the damage appears to be deeper and more persistent than Tesla anticipated.

The sharp decline follows a troubling first quarter in which Tesla’s net income cratered by 71%, triggering concerns across Wall Street that the company’s once-dominant hold on the EV market might be slipping. With another earnings report due later this month, the pressure is building. Tesla may have exceeded expectations on deliveries of its Model 3 and Model Y, selling 373,728 units against an analyst forecast of 356,000, but the broader numbers still reveal a company in retreat, not rebound.

Tesla’s brand, once synonymous with innovation and status, now carries more political baggage than some buyers are willing to carry. Musk’s alignment with hard-right U.S. figures and support for far-right politicians in Europe has divided potential customers. For some, Tesla is no longer just a car—it’s a statement they don’t want to make.

Despite the sales slide, Tesla shares rose roughly 4% in premarket trading—fueled mostly by the modest outperformance in vehicle deliveries. But market enthusiasm may prove fragile. With each quarter that passes without a full recovery in demand, it becomes harder to ignore the impact of Musk’s personal brand on Tesla’s bottom line.

Tesla isn’t just fighting to stay ahead in the EV market — it’s fighting to win back trust. Buyers aren’t only comparing horsepower or battery life anymore; they’re weighing the baggage that comes with the badge. And for many, Musk’s personal politics have made that decision easier — by steering them elsewhere.

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