Tesla is facing weakening deliveries due to aging models and competition, potentially leading to decline

Tesla is facing a concerning trend of weakening deliveries, with Q2 sales falling 13.4% year over year to 384,122 vehicles. This decline comes despite no production issues, highlighting a demand problem. In contrast, competitors like General Motors and BYD Co Ltd are seeing growth in EV sales, putting pressure on Tesla’s market share.

The reasons behind Tesla’s delivery decline include an aging model lineup, stronger competition offering more advanced features, and CEO Elon Musk’s polarizing persona turning off consumers. With Musk already lowering growth targets, Tesla could see a second consecutive year of declining sales unless drastic changes are made in the second half of 2025.

Tesla’s stock currently carries a Zacks Rank #5 (Strong Sell), with shares rising 28% over the past year. The company’s forward price-to-sales ratio of 9.64 is significantly higher than the industry average. With a cloudy outlook for the future, Tesla may need to make significant adjustments to avoid another down year in deliveries.

Read more at Nasdaq: Will Tesla See a Second Consecutive Year of Delivery Decline?