Tesla races back as sales soar, indicating a strong recovery after months of boycotts
Strong demand, lower prices EVs and renewed investor confidence help Tesla outperform expectations despite U.S. challenges
TEXAS CITY, TEXAS — Tesla has reported a strong rise in vehicle sales, suggesting the company may be recovering from last year’s customer backlash linked to CEO Elon Musk‘s political views. The electric carmaker delivered more than 480,000 vehicles in the second quarter, a 25% increase from the same period last year and well above analysts’ expectations.
The improved results mark Tesla’s second straight quarter of sales growth after a difficult period in which the company lost its position as the world’s biggest electric vehicle seller to China’s BYD. The increase was supported by lower priced-versions of the Model Y and Model 3, as well as better demand in Europe.
“Several factors helped us achieve this result. We introduced more affordable versions of our vehicles, improved production and delivery, and saw growing demand in many markets, especially in Europe. Our goal remains to make electric vehicles more accessible," said the CEO of Tesla, Elon Musk.”
Tesla also benefited from growing interest in electric vehicles across Europe, where higher fuel prices encouraged more drivers to switch to EVs. The company is also expanding its Full Self Driving (Supervised) technology as more European countries approve its use.
A row of Tesla Supercharger pedestals stands ready for electric vehicle charging in Fussen, Swabia, Bavaria, Germany on February 7, 2026 at 8:21 PM. Photo: Michael Nguyen/Getty Images
Despite the strong sales figures, Tesla’s shares dropped about 6% as some investors took profits after recent gains. Sales in the United States are still believed to be declining, partly because the end of a federal EV tax credit has made electric cars more expensive for many buyers. Tesla also continues to face growing competition from Chinese and other global EV manufacturers, putting pressure on prices and innovation.
Even with challenges in the U.S., investor confidence remains strong. Tesla’s stock has risen sharply over the past year as the company continues to focus on future technologies such as self-driving vehicles, robotaxis and humanoid robots, helping shift attention beyond its traditional car business.
Tesla is also investing heavily in artificial intelligence and advanced battery technology to lower production costs and improve vehicle performance. Analysts say these investments could strengthen the company’s long-term position as competition in the global electric vehicle market continues to grow.