Tesla sales soar 25% in sign its troubles may be easing
By Anna Cooban, Chris Isidore, CNN
London (CNN) — Tesla’s global sales shot up 25% in the second quarter in a sign that Elon Musk’s EV maker may be turning a corner – at least in Europe.
The company posted deliveries of more than 480,000 in the three months to the end of June, up from a little over 384,000 during the same period in 2025. Deliveries are used as a proxy for Tesla sales.
While Tesla doesn’t break down deliveries by region, there are signs that Europe led the way. Data from the European Automobile Manufacturers’ Association (ACEA) showed Tesla sales surged 77% during the first five months of the year.
Tesla’s recovery in Europe was likely helped by a boost to demand for electric vehicles from higher pump prices, government EV incentives and an easing of a consumer backlash to Musk’s politics, which was particularly pronounced in the region.
Tesla European sales cratered 38% last year, according to ACEA data, when Musk publicly backed some far-right political candidates in Germany and Britain and played a controversial role in President Donald Trump’s administration, spearheading efforts to lay off thousands of federal workers.
“Europe is (in) bounce back mode after suffering for a year on the anti-Musk vibes that were abound in Europe,” Dan Ives, global head of technology research at Wedbush Securities, told CNN in an emailed statement Friday.
Tesla’s results – which came in above expectations – indicate the company may be recovering after two straight years of annual sales drops and the removal EV tax credits in the US, which has lowered the incentive for prospective American buyers.
In a note published Tuesday, analysts at Deutsche Bank forecasted deliveries at 416,000 for the quarter, saying that it expected international sales to do “the heavy lifting, with Europe acting as the standout driver.”
Seth Goldstein, a senior equity analyst for Morningstar, attributed Tesla’s sales bump to rising market share in Europe. In an analysis published Friday, Goldstein said he sees long-term EV sales growth in Europe as they become more affordable relative to fossil fuel-powered vehicles and as “fast-charging network is built out along major highways and in cities throughout the continent.”
Still, Tesla, like other Western carmakers, faces intensifying competition from Chinese EV producers. The company lost its status as the world’s biggest EV maker to China’s BYD last year. BYD’s European sales are up 159% in the January to May period, according to ACEA figures, and it is now 12% ahead of Tesla after trailing even its depressed European sales last year.
But Musk’s $1.5 trillion company has ambitions beyond EVs and its betting big on autonomous driving and artificial intelligence. Last summer, Tesla debuted its robotaxis – a ride-hailing service using cars with its so-called full self-driving (FSD) tech – in a handful of markets.
It also plans to produce humanoid robots after discontinuing production of its two most expensive models – the Model S and Model X – in order to free up factory space. But the robotaxi business has been much slower rolling out than Tesla had forecast, and the robots are yet to be available for sale.
The-CNN-Wire
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