Tesla's sales are declining for the second consecutive year – in the first half of 2025, deliveries fell by 13%. The company is losing ground in the US, Europe, and China due to increased competition from China's BYD, an outdated model lineup, and reduced government subsidies. This is stated in a Bloomberg article, writes UNN.
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Elon Musk's political activity, his conflict with the Trump administration, and new tariffs on electric vehicles have further exacerbated the situation. Tesla has reduced profits from environmental credits, while expenses have increased by hundreds of millions of dollars.
In Europe, Tesla lost almost a third of new car registrations in a year, and in China, deliveries from the Shanghai plant declined for most months of 2025. Competitors offer more models and lower prices, while Tesla is limited to a few old series – Model 3, Model Y, S, X, and Cybertruck. Despite Elon Musk's promises to create an "affordable electric car," the company has focused on cheaper versions of the Model 3 and Y, whose starting price remains around $40,000.
To compensate for losses, Tesla is trying to open new markets, particularly India, but prices there are too high for local consumers. In China, the company is integrating local artificial intelligence systems and releasing a six-seater version of the Model Y, but demand remains moderate.
Investors hope that Musk will be able to restore the company's image through robotaxis and Optimus robots, but for now, demand for the main models is falling, and Tesla's future remains uncertain.