Tesla Deliveries Drop 13% in Q2 2025: Demand Slows, Inventory Grows, and Cybertruck Stalls

Tesla, once the undisputed leader of the electric vehicle revolution, is now grappling with serious signs of slowdown. The company just released its Q2 2025 production and delivery numbers, and the picture isn’t pretty: global deliveries fell 13% year-over-year to 384,122 units — missing already tempered Wall Street expectations by a whisker.

Despite producing 410,244 vehicles this quarter, Tesla ended up with around 25,000 unsold units sitting idle — adding to an estimated €2 billion pileup of excess inventory. And this isn't a one-off dip. It follows a rocky first quarter, confirming a troubling trend of declining demand amid rising competition and an aging vehicle lineup.

Model 3 and Y Dominate, While "Other Models" Falter

Tesla continues to lean heavily on the Model 3 and Model Y, which together accounted for 373,728 deliveries. But it’s the “Other Models” segment — including the Model S, Model X, Tesla Semi, and Cybertruck — that’s sounding the alarm bells. That category managed just 10,394 deliveries from 13,409 units built.

The Cybertruck, once hyped as a game-changer, is quickly becoming a cautionary tale. Tesla aimed for 250,000 units annually, but Q2 deliveries are estimated at just 5,000 — a far cry from the 2 million reservations once touted. For comparison, Ford sold 5,842 F-150 Lightnings during the same quarter, despite posting a 26% decline. GM’s combined EV truck sales (Silverado, Sierra, Hummer) also outpaced Tesla’s.

No More Excuses — Production is Up, But Buyers Aren’t Biting

Earlier delays were blamed on factory upgrades for the revamped Model Y. Now that production lines are humming again, Tesla’s biggest problem is clear: people just aren’t buying. Even with the $7,500 federal EV tax credit in play for some models, Tesla’s U.S. sales are estimated to have fallen by as much as 20% this quarter.

Meanwhile, competition is heating up from both legacy automakers and nimble EV startups, and consumer enthusiasm for EVs — once feverish — is cooling off.

Storm Clouds Ahead: Policy Risks and No Backup Plan

Looking ahead, Tesla may face even more headwinds. Proposed federal policy changes threaten to eliminate EV tax incentives and weaken emissions rules that have historically benefited the brand. And with no internal combustion vehicles in its arsenal, Tesla lacks the fallback options of its rivals.

And Yet, the Stock Keeps Rising…

Despite all this, the market remains oddly unfazed. Investors seem more captivated by Elon Musk’s next big thing — whether it's the much-delayed Robotaxi launch or the promised swarm of AI-powered humanoid robots — than by Tesla’s real-world performance. With warehouses full of unsold cars and Cybertruck demand evaporating, the disconnect between hype and reality has never been more striking.