TLDR
- Tesla stock falls as Q2 2025 sales drop 13% to 143,535 vehicles
- Used Tesla prices crash to 55% of original value, hurting new car demand
- European markets show eight-month decline with 47% drop in France
- Federal EV tax credit ends September 2025, making new cars more expensive
- Competition from Chinese EV makers like BYD intensifies globally
Tesla’s quarterly sales figures paint a troubling picture for the electric vehicle leader. The company delivered 143,535 vehicles in Q2 2025, representing a sharp 13% decline year-over-year.

This drop pushed Tesla’s U.S. market share down to 46.2%, losing 3.5 percentage points. The broader American EV market contracted 6% to 310,839 total vehicles sold.
Used Tesla values have collapsed dramatically. Late-model electric vehicles now sell for approximately 55% of their original price tags. Internal combustion engine vehicles retain about 75% of their value by comparison.
A 2022 Model Y that originally cost $50,000 can be purchased for $25,000-$30,000 on used car platforms. This creates powerful competition against new vehicle sales.
RBC analyst Tom Narayan warns that EV sales are “going to get worse” as buyers opt for used alternatives. The math strongly favors pre-owned vehicles over new purchases.
Federal Tax Credits End Soon
The $7,500 federal EV purchase credit expires in September 2025. This deadline creates urgency for buyers but threatens future demand once the incentive disappears.
New EV prices will effectively increase by thousands of dollars starting October 1. Many potential customers may delay purchases or shift to the used market instead.
Ford’s EV division lost $1.3 billion in Q2, equivalent to $22,000 per vehicle sold. These losses highlight the profitability challenges facing EV manufacturers.
Traditional automakers like Ford and GM may actually benefit from lower EV sales. They generate higher margins on internal combustion vehicles.
European Markets Continue Decline
Tesla’s European sales woes extended to an eighth consecutive month in August 2025. France reported a 47% drop in Tesla registrations compared to August 2024.
Sweden experienced an even steeper 84% decline during the same period. Denmark saw registrations fall 42% year-over-year.
The revamped Model Y launched in June failed to reverse these trends. Model Y sales dropped 46% in Denmark and 87% in Sweden during August.
Chinese competitor BYD surged 218% in Norway while Tesla gained just 21%. This highlights intensifying competition from Asian manufacturers.
Tesla faces multiple headwinds including an aging product lineup. The company hasn’t launched a mass-market model since the Model Y debuted in 2020.
CEO Elon Musk’s political activities have created additional consumer resistance. Over 50% of surveyed buyers said Musk’s influence discourages Tesla purchases.
Tesla has sold 2.4 million EVs in America since 2021, capturing 55% of total market share. Despite current challenges, the company maintains its leadership position.
Used Tesla sales in the UK jumped 270% in July 2025 as prices hit new lows. This trend could accelerate as federal incentives disappear.