Tesla delivered 480,126 vehicles worldwide in the second quarter, a 25 per cent increase from the same period a year earlier and well above the consensus analyst estimate of around 401,000 units. The figure, published on 2 July, also exceeded the company’s own internal projection of 406,024. Production rose 10.1 per cent to 451,758 vehicles, with the Model 3 and Model Y accounting for 467,762 deliveries, while just 12,364 units of other models—including the Cybertruck—reached customers.

The recovery was driven overwhelmingly by Europe. New Tesla registrations in the European Union climbed 77 per cent in the first five months of the year, according to the European Automobile Manufacturers’ Association, with German sales up 300 per cent in May alone. Analysts at Deutsche Bank estimated European deliveries grew roughly 40 per cent in the quarter. China also contributed to the gains. By contrast, North American sales fell 21 per cent, a decline that market participants link to the expiry of a $7,500 federal tax credit and the lingering effects of consumer boycotts tied to Elon Musk’s earlier political activity. Chinese rival BYD remained the global leader, selling 557,090 fully electric cars in the same period.

Despite the delivery beat, Tesla’s share price dropped as much as 8 per cent in New York trading. Investors appeared to look past the automotive figures, focusing instead on the company’s pivot towards artificial intelligence, robotics and autonomous driving. Musk has distanced himself from the Trump administration since leaving the White House in May 2025, and the narrative around Tesla has shifted to future revenue streams such as the Optimus humanoid robot and the Cybercab robotaxi. The stock’s decline was compounded by the disclosure that fund manager Michael Burry had taken a short position, while SpaceX’s record initial public offering in June has drawn attention away from Tesla’s core car business.

Tesla plans to report full second-quarter financial results on 22 July. The company has flagged capital expenditure of more than $25 billion this year, roughly triple the prior year’s level, as it expands production capacity for new technologies. Regulatory approvals for its Full Self-Driving (Supervised) system are advancing in Europe, with the Netherlands, Estonia, Greece and Lithuania giving the green light. Whether the sales momentum can be sustained will depend in part on how quickly those features translate into revenue and whether the European demand recovery proves durable.