TLDR
- Tesla stock dropped 1.9% to $310.78 following reports that VP of North American sales Troy Jones left the company
- Second-quarter U.S. EV sales fell 6% year-over-year, marking the first quarterly decline since 2021
- Tesla delivered 720,803 cars in first half of 2025, down 13% from same period last year
- Company faces increased competition from Chinese manufacturers like BYD offering much lower prices
- Tesla reports Q2 2025 earnings on July 23, with analysts expecting weak results due to declining EV sales
Tesla stock tumbled Tuesday after news broke that another senior executive had departed the electric vehicle maker. The company’s shares fell 1.9% to close at $310.78, despite earlier reaching highs of $321.20 that briefly pushed Tesla’s market value above $1 trillion.
The Wall Street Journal reported that Troy Jones, Tesla’s vice president of sales, service, and delivery in North America, had left the company. Jones had been with Tesla since 2010, making him a long-tenured employee whose departure caught investors’ attention.
This marks the second sales-related executive departure in recent weeks. Omead Afshar, an aide to CEO Elon Musk who worked in North American sales and manufacturing, left the company less than a month ago.
Tesla loses executives from time to time, and its position as the world’s most valuable automaker ensures extra scrutiny. However, Jones’ departure comes at a particularly challenging time for the company.
The broader EV market is showing signs of strain. Cox Automotive reported that second-quarter U.S. EV sales dropped 6% year-over-year to approximately 311,000 vehicles. This marked the first quarterly decline in EV sales since 2021.
Tesla’s own sales struggles have been particularly pronounced. The company delivered 720,803 cars through the first six months of 2025, down 13% compared to the same period in 2024.
Mounting Sales Pressure
Wall Street’s expectations for Tesla have shifted downward throughout the year. At the start of 2025, analysts expected the company to sell about 2.1 million cars. That estimate has now fallen to closer to 1.7 million vehicles, down from 1.8 million shipped in 2024.
The sales decline has accelerated in recent quarters. Tesla’s U.S. sales dropped 13% year-over-year in the second quarter, worse than the 9% decline recorded in the first quarter.
Even Tesla’s updated Model Y showed mixed results. While sales rebounded to about 86,000 vehicles in the second quarter from 64,000 in the first quarter, the numbers still lagged year-over-year comparisons.
Tesla faces increased competition from Chinese manufacturers who can offer much lower prices. BYD, for example, sells its entry-level Seagull EV for under $10,000 in its domestic market.
In Germany, Tesla’s EV sales plummeted 60% in June, even as overall EV sales in the country grew 8.6%. Chinese manufacturers like BYD nearly quadrupled their sales in Germany during the same period.
The competitive pressure has put Tesla in a difficult position. The company must decide whether to engage in a price war or shift focus to other business areas.
Future Outlook and Challenges
Some improvement may come in the third quarter. President Donald Trump’s One Big Beautiful Bill Act eliminates federal EV purchase tax credits in September, potentially driving purchases before that deadline.
However, analysts warn that the fourth quarter could see a collapse in sales once the tax credits disappear. EV sales currently account for about 7% of all new car sales in the second quarter, down from a peak of almost 9% in the third quarter of 2024.
Tesla is exploring new markets to offset domestic challenges. The company recently started selling its Model Y in India for about 6 million rupees ($70,000).
The company is also expected to launch a lower-priced vehicle in the second half of the year, though no details about this model have been revealed yet.
CEO Elon Musk has been spending less time in Washington, D.C., where he had been serving as an advisor to the administration on cutting government spending and staffing. His increased focus on Tesla operations coincides with the recent executive departures.
Tesla’s stock has declined about 22% year-to-date coming into Tuesday’s trading session. The company’s current price-to-earnings ratio of 172.2 makes it substantially more expensive than many of its big-tech peers.
Tesla will report its second-quarter 2025 financial results on July 23, giving investors their next major update on the company’s performance.
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