Tesla Faces Declining EV Deliveries Amidst Waning Consumer Interest

The buzz around Wall Street is shifting as expectations for Tesla’s delivery numbers are being dialed back. The company, led by Elon Musk, is grappling with declining consumer interest and the looming possibility of reduced federal incentives for electric vehicles.

On June 6, analysts at Oppenheimer revised their delivery forecasts downward for both this year and next due to disappointing figures emerging from China and Europe. They now anticipate approximately 1.63 million deliveries in 2025—marking what would be another annual decline—falling short of the average estimate of about 1.7 million compiled by Bloomberg.

“Tesla’s challenges are just beginning,” noted Colin Rusch and his team in their report,emphasizing that the automaker must work hard to mend its brand image while focusing on strategies involving artificial intelligence and robotics.

Goldman Sachs also joined the trend on June 6 by lowering its projections for second-quarter deliveries along with its stock price target; they now expect around 365,000 handovers instead of an earlier forecast of 410,000.

This dip in expectations adds to Tesla’s woes as it faces sluggish sales alongside public backlash against Musk’s political engagements and ongoing tensions between him and former President Donald Trump.Following thes developments on June 5th, shares plummeted by nearly 14%, marking one of their worst weekly performances as early last year—a staggering drop of about 15% overall this week alone.

Tesla is gearing up to introduce a robotaxi service in Austin soon as Musk places meaningful bets on autonomous driving technology shaping the company’s future.

The start of this year has been rocky for Tesla after experiencing stagnant growth last year—the first time it failed to increase annual deliveries in over ten years. The brand has seen heightened polarization due to Musk’s brief involvement with Trump’s administration coupled with his controversial political stances; additionally, production halts during updates to the Model Y have further impacted sales figures.

Tesla continues facing hurdles across key markets

In Europe specifically, Tesla struggles remain evident within crucial markets while U.S.-based sales have dropped significantly—around an estimated decrease of about 18 thousand vehicles or 9 percent compared to last year’s figures according to Cox Automotive data—even after launching an updated version of their popular model Y vehicle.