Tesla Misses 2025 Q2 Delivery Forecasts as EV Sales Drop 13% Year Over Year

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By Christian Drerup Published
Tesla Misses 2025 Q2 Delivery Forecasts as EV Sales Drop 13% Year Over Year

© Tesla Dealership in Boulder Colorado (BY-SA 2.0) by Dave Dugdale

Tesla stock has been all over the map across the last few years. It was on the rise in 2023 and 2024, but the stock has recently struggled. The 2025 quarter 1 earnings report was disappointing, showing declining EV sales. In the last handful of days, the stock has done well, rising over 6%. However, it remains down over 16% year to date. Additionally, it sits at roughly 34% below its all-time high, which occurred in the last quarter of 2024. With enhanced political turmoil surrounding Elon Musk in 2025, investors are playing it safe when it comes to this company. 

Current Tesla debate surrounds the Robotaxi. Several experts believe this new rollout could revitalize growth, assuming favorable public response. However, Tesla’s infamous EV line of trucks and cars is facing continued challenges due to falling margins and demand. It all hinges on Musk’s next moves in the world of AI and autonomous vehicles. These areas are extremely risky in terms of excessive capital required and an unproven industry.

This slideshow will cover the ins and outs of Tesla stock, including its recent history, potential in the autonomous transportation market, and how political aspects are affecting the company as a whole. We’ll also discuss what the experts think, with some warning of deteriorating fundamentals, and others concluding the stock is likely to rebound. Learn about one of the most watched stocks in the 2025 market.

Tesla’s 2025 Stock Struggles

Tesla Recalls Over 100,000 Model S Vehicles

2018 Getty Images / Getty Images News via Getty Images

  • TSLA is down 16.44% YTD and nearly 34% from December 2024 highs
  • A recent 6.56% rebound offers modest short-term recovery

Volatile Start to the Year

Tesla Stock Rises Over 8 Percent After Company's Shareholder Meeting

2018 Getty Images / Getty Images News via Getty Images

  • Poor Q1 earnings and regulatory tensions pressured the stock
  • Q2 saw slight improvement, but volatility persisted into Q3

Robotaxi Launch Offers Hope

Electric Car Maker Tesla Reports Record Quarterly Earnings

2021 Getty Images / Getty Images News via Getty Images

  • Analysts cite Robotaxi launch as a potential long-term catalyst
  • Success depends on regulatory approval and public reception

Core EV Business Faces Pressure

Tesla's Model Y Becomes World's Best Selling Car In First Quarter Of 2023

2023 Getty Images / Getty Images News via Getty Images

  • EV sales declined year-over-year, reducing core revenue
  • Margins are shrinking from post-pandemic highs

Beyond Cars: FSD and Robotics

Tesla's Model Y Becomes World's Best Selling Car In First Quarter Of 2023

2023 Getty Images / Getty Images News via Getty Images

  • Tesla is investing in AI, FSD, and humanoid robotics
  • Future growth may rely on expansion beyond EVs

Political Influence and Risk

Elon Musk at the Inauguration Of Donald J. Trump As The 47th President

2025 Getty Images / Getty Images News via Getty Images

  • Elon Musk has aligned closely with President Trump
  • Tesla stock initially surged post-election but later declined

Diverging Analyst Opinions

Tesla Cybertruck

Lcaa9, CC BY-SA 4.0 , via Wikimedia Commons

  • Price targets range from $19.05 to $500 per share
  • Analysts are split with 13 ‘Buy’, 13 ‘Hold’, and 9 ‘Sell’ ratings

Tesla Delivery Forecasts Miss the Mark

Tesla Recalls Almost 700,000 Vehicles Over Tire Pressure Warning System

2024 Getty Images / Getty Images News via Getty Images

  • Q2 deliveries (~384,000) were down 13% YoY
  • 2025 estimates range from 1.95M to 2.08M units

Institutional Confidence Wanes

Rear view of unrecognizable female driving modern electric car. Tesla tablet screen.

Iryna Inshyna / Shutterstock.com

  • Institutional holdings fell to 48.74%
  • Indicates declining support from major investors

Wall Street’s 2025 Targets

24/7 Wall St

  • Median price target: $293.38 (+7.43%)
  • 24/7 Wall St. target: $352.99 (+11.37%)

What’s Next for Tesla?

2025+Tesla+Model+Y | 2025 Tesla Model Y RWD in Midnight Silver Metallic, front right

  •  Rebound hinges on execution in AI and EV growth
  • Investors face continued uncertainty and volatility
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