Tesla’s largest EV plant in the world suffers eighth straight month of declining demand as May sales sink 15%
From Yahoo Finance: 2025-06-05 09:40:00
Outbound volumes from Tesla’s GigaShangai factory dropped 15% in May. Despite being seen as an AI company, most revenue still comes from selling cars. With a chance for EV sales to rebound in Q2 dwindling, global demand for Tesla cars is shrinking, with China registering an eighth straight month of declines.
Tesla’s core business accounted for 72% of revenue and profit in Q1, hitting its lowest level in three years. Stock prices are surging despite crashing sales, making Tesla the ninth most valuable company globally. Optimism surrounds Tesla’s robotaxi service launch, but doubts persist about its technology’s capabilities.
One investor cited valuation disconnect from fundamentals, selling Tesla stock. Bright spots in Norway and Australia show some gains, but do not reflect the broader Tesla trend. Other major markets like the UK and Germany saw a 36% decrease in Tesla registrations, indicating a challenging road ahead for the company’s EV sales. Tesla may see an 11% drop to 395,000 cars in Q2.