Print As Elon Musk scrambles to restore Tesla’s reputation and deliver on promises of autonomous driving technology, vehicle sales for the company continued to fall last quarter. Tesla delivered 384,122 vehicles in the quarter through June, down 13% from 443,956 deliveries a year ago. The drop in deliveries is a result of increased competition, plateauing demand for electric vehicles and brand damage triggered by Musk’s role in the Trump administration, experts said. Advertisement Can Elon Musk get Tesla back on track? Here are four road bumps As Elon Musk pivots away from Washington and back to his companies including Tesla, experts say he will have to address several challenges. June 5, 2025 Though Tesla remains the dominant force in the electric vehicle market, major manufacturers including Ford and Chevy have released their own electric vehicles. Startups such as Irvine-based Rivian have also cut into Tesla’s market share. At the same time, demand growth for electric vehicles has flattened as the market becomes saturated, analysts said. In February, Tesla topped the list of brands that lost the most resale value year over year, according to Karl Brauer, an analyst with iSeeCars.com. The price of a used Tesla Model S and Model Y each dropped by about 16% in February from a year earlier, he said. Advertisement “It could be that nobody wants to buy them anymore, or that there’s a massive influx of them available, or both,” Brauer said in an interview in March. Rivian reported lower than expected production numbers on Wednesday, signaling trouble throughout the industry. The company assembled nearly 6,000 trucks, SUVs and delivery vans in the second quarter, falling short of Wall Street estimates of more than 11,300.