Tesla's sales have plummeted by nearly 9 percent in 2025, marking the second consecutive year of decline. The electric vehicle (EV) giant reported a staggering drop in sales during its final quarter of last year, with only 77,343 fewer vehicles sold compared to the same period in 2024.
While the company's annual sales figures show a slightly better trend, with a 8.6 percent decline over the past year, the numbers still paint a bleak picture for Tesla. The company managed to shift 1.636 million cars in 2025, which is 153,097 fewer than it did in 2024.
Industry analysts point to several reasons behind the sales slump, including Tesla's heavy reliance on the Models 3 and Y, which have failed to impress consumers with their outdated designs compared to European and Asian competitors. The company's much-hyped Cybertruck has been a disaster, with its initial promise of a $40,000 price tag and innovative features now seen as hollow.
Elon Musk's continued focus on AI projects at the expense of Tesla's core business has also contributed to the decline. Furthermore, Musk's far-right ideology has alienated customers in key markets such as California and Europe, where environmental concerns tend to influence purchasing decisions.
The situation takes a deadly turn with numerous reports of fatal accidents involving Tesla vehicles due to faulty doors. The company is under investigation by the National Highway Traffic Safety Administration (NHTSA), while Chinese regulators have banned its door handle design from January 2027, citing safety concerns.
As if all this were not enough, Tesla's stock continues to defy logic with a market capitalization of over $1.4 trillion. Despite the dire sales figures, the company's shares remain firmly in place, leaving many to wonder how and why this is possible.
While the company's annual sales figures show a slightly better trend, with a 8.6 percent decline over the past year, the numbers still paint a bleak picture for Tesla. The company managed to shift 1.636 million cars in 2025, which is 153,097 fewer than it did in 2024.
Industry analysts point to several reasons behind the sales slump, including Tesla's heavy reliance on the Models 3 and Y, which have failed to impress consumers with their outdated designs compared to European and Asian competitors. The company's much-hyped Cybertruck has been a disaster, with its initial promise of a $40,000 price tag and innovative features now seen as hollow.
Elon Musk's continued focus on AI projects at the expense of Tesla's core business has also contributed to the decline. Furthermore, Musk's far-right ideology has alienated customers in key markets such as California and Europe, where environmental concerns tend to influence purchasing decisions.
The situation takes a deadly turn with numerous reports of fatal accidents involving Tesla vehicles due to faulty doors. The company is under investigation by the National Highway Traffic Safety Administration (NHTSA), while Chinese regulators have banned its door handle design from January 2027, citing safety concerns.
As if all this were not enough, Tesla's stock continues to defy logic with a market capitalization of over $1.4 trillion. Despite the dire sales figures, the company's shares remain firmly in place, leaving many to wonder how and why this is possible.