After months in which Elon Musk's politics, showroom protests, and weaker demand weighed on Tesla, the company's newest delivery figures suggest conditions may be improving for the EV maker.
As The Associated Press reported, Tesla reported 480,126 deliveries in the second quarter, easily outpacing analyst estimates and landing well above the same period last year.
What happened?
The outlet notes that Wall Street had been expecting roughly 401,000 second-quarter deliveries, but Tesla easily exceeded that, posting 480,126. That figure was 25% higher than the 384,122 vehicles it delivered a year earlier and marked its second straight quarterly increase, the AP said.
The rebound follows a difficult period. As the AP noted, customer boycotts in the U.S. and Europe intensified after Musk publicly backed controversial political figures, while Tesla was also coming off sales declines and had lost the title of top EV maker to BYD.
Tesla's latest report did not include a breakdown by country, but the AP reports May trade data from Europe suggested solid momentum overseas, including a reported 300% jump in a once- troubling spot, Germany.
The company has also tried to spur demand by offering lower-cost Model Y and Model 3 versions, reducing lease and loan costs in Europe, per the AP.
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Even with the stronger-than-expected delivery numbers, Tesla's stock fell nearly 7% in midday trading Thursday. Morningstar analyst Seth Goldstein told the AP that the drop may have been driven by investor profit-taking after a recent rally.
Why does it matter?
Tesla remains one of the most influential EV makers in the world. If Tesla keeps moving more vehicles, shoppers could continue benefiting from lower-priced trims, financing deals, and stronger competition across the EV market.
EVs can save drivers money over time through lower fuel and maintenance costs while also cutting tailpipe pollution. Broader adoption can help reduce planet-warming pollution from transportation, which remains one of its largest sources.
There are still signs of weakness, the AP notes. Cox Automotive estimates Tesla's U.S. sales were down 20% year over year in the second quarter, and losing the federal EV tax break may have raised purchase costs by as much as $7,500 for some buyers.
Pricing, incentives, and financing still play an outsized role in whether an EV feels affordable.
What can I do?
For Tesla, the path forward appears fairly clear. The brand can offer less expensive versions of popular models, make financing more appealing, and expand access to features such as Full Self-Driving (Supervised) where it's allowed in Europe.
FSD is now approved for use in the Netherlands, Estonia, Greece, and Lithuania.
Local rebates, utility programs, and financing offers can make an even bigger difference when federal support is more limited, like in the United States.
While Tesla's latest quarter does not erase its earlier struggles in 2025, it does point to steadier demand and an EV market that may still have room to expand.
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