Tesla Slows, BMW Drops Sharply in U.S.

Tesla’s international EV deliveries declined for the second consecutive quarter, however it’s BMW’s U.S. electrical car gross sales that noticed the steepest drop in Q2 2025. Based on Tesla’s latest earnings report, the automaker delivered 384,122 electrical autos worldwide within the second quarter of 2025—a 13% year-over-year decline. Whereas nonetheless the world’s prime EV producer by quantity, Tesla’s quarterly slowdown displays an 18-month pattern of demand challenges and intensifying international competitors. Cybertruck gross sales additionally proceed to underperform, with simply ~5,000 items delivered in Q2 and an annualized fee properly beneath preliminary targets. Understand that Tesla solely affords concrete gross sales numbers for the Mannequin 3 and Y fashions.

However BMW’s U.S. EV gross sales inform an much more dramatic story. In Q2 2025, BMW sold 11,094 battery electric vehicles in the U.S.—a 21.2% decline from the identical interval in 2024. Yr-to-date, the German automaker has delivered 24,632 BEVs, simply shy of final yr’s first-half whole of 24,794.

Right here’s how every BMW EV mannequin carried out in Q2:

• BMW i4: 5,724 items (–19%)
• BMW i5: 1,434 items (–43.6%)
• BMW i7: 820 items (–11.7%)
• BMW iX: 3,116 items (–12.1%)

The BMW i5, a key competitor to the Tesla Mannequin S and Mercedes EQE, skilled the sharpest decline. Solely the i4 posted year-to-date progress (+10.7%) because of its sporty design and accessible value level.

Why Are BMW EV Gross sales Falling?

A number of components might be contributing to BMW’s declining U.S. EV efficiency:

• Lack of Federal EV Tax Credit score: As of mid-2025, none of BMW’s EVs qualify for the complete $7,500 tax credit score attributable to battery sourcing restrictions—not like Tesla, which nonetheless advantages from full incentives on the Mannequin 3 and Mannequin Y.
• Mid Lifecycle for Some Merchandise: BMW’s present electrical autos are constructed on modified inside combustion platforms, other than the iX. Most of those merchandise are already 2-4 years previous with new facelifts being launched this year or inside the next couple of years. Issues will change subsequent yr when the all-new Neue Klasse EVs with next-generation tech will arrive.
• Stiffening Competitors: BMW is battling conventional rivals like Mercedes-Benz, Audi and Porsche, together with EV-only OEMs like Tesla, Lucid and Rivian.

Tesla Nonetheless Dominates, Regardless of Challenges

Within the U.S., Tesla’s estimated Q2 2025 EV gross sales surpassed 175,000 items, making it the clear chief. Most of these gross sales got here from the Mannequin Y and Mannequin 3, which stay eligible for tax credit and profit from Tesla’s proprietary Supercharger community.

Globally, Tesla’s EV progress has stalled. The automaker delivered 1.79 million autos in 2024, barely down from 1.81 million in 2023—its first yr of flat progress after a decade of growth. With EV demand softening and financial uncertainty rising, Tesla faces strain to ship record-breaking gross sales within the second half of 2025 to satisfy CEO Elon Musk’s goal of resuming annual progress.

The Street Forward: Neue Klasse vs. Tesla’s Mannequin 2

BMW’s future hinges on the upcoming Neue Klasse architecture, which debuts in 2026 with the iX3 and i3 electric models. These autos promise sooner charging, higher effectivity, and extra reasonably priced pricing—constructed from the bottom up as EVs.

Tesla, in the meantime, is engaged on its extremely anticipated $25,000 “Mannequin 2”, which might shake up the worldwide EV market if it reaches manufacturing. However with Cybertruck demand lagging and Mannequin S/X volumes shrinking, execution stays vital.