Tesla Global News #33

Tesla Faces Declining Deliveries Amid Competitive Pressures

Tesla is bracing for a tough second quarter, with global vehicle deliveries projected to drop to 395,328 units, an 11% decline from the same period last year, according to Bloomberg consensus estimates.

This marks a continuation of challenges for the electric vehicle (EV) pioneer, which has seen its market dominance erode in key regions. In the U.S., Tesla’s EV registrations fell 16% in April 2025, while competitors like General Motors’ Chevrolet brand reported a staggering 215% surge, driven by models like the Equinox EV and Blazer EV. The intensifying competition underscores a broader shift in the EV landscape, where affordability and diverse offerings are reshaping consumer preferences. In China, the world’s largest EV market, Tesla’s struggles are even more pronounced.

The company’s market share slipped to 7.6% in the first five months of 2025, down from 10% the previous year, as local giants like BYD and newcomers like Xiaomi gain ground with feature-rich, competitively priced models. Xiaomi’s SU7, for instance, has captured attention with its advanced infotainment and sleek design, posing a direct challenge to Tesla’s Model 3 and Model Y. Analysts suggest Tesla may need to implement further price cuts to maintain its foothold, a strategy that could strain margins already under pressure from rising production costs and softening demand.Amid these headwinds, Tesla is pivoting toward innovation to secure its long-term growth. The company is heavily investing in artificial intelligence and autonomous driving technology, with its robotaxi program gaining traction despite recent setbacks in trial phases. Posts on X reflect a mix of optimism and concern, with some users praising Tesla’s vision for a fully autonomous future, while others question its ability to navigate intensifying competition and regulatory scrutiny. As Tesla prepares to release its Q2 delivery figures, the spotlight remains on whether its strategic shift toward AI and self-driving technology can offset the immediate challenges of declining deliveries and market share erosion.