Tesla’s international EV deliveries declined for the second consecutive quarter, but it surely’s BMW’s U.S. electrical car gross sales that noticed the steepest drop in Q2 2025. In keeping with Tesla’s newest 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 high 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 price effectively beneath preliminary targets. Remember that Tesla solely gives 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 offered 11,094 battery electrical autos within the U.S.—a 21.2% decline from the identical interval in 2024. 12 months-to-date, the German automaker has delivered 24,632 BEVs, simply shy of final 12 months’s first-half complete 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 development (+10.7%) due to its sporty design and accessible worth level.
Why Are BMW EV Gross sales Falling?
A number of elements 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 total $7,500 tax credit score because of 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 inner combustion platforms, except for the iX. Most of those merchandise are already 2-4 years outdated with new facelifts being launched this 12 months or inside the subsequent couple of years. Issues will change subsequent 12 months 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 development has stalled. The automaker delivered 1.79 million autos in 2024, barely down from 1.81 million in 2023—its first 12 months of flat development after a decade of enlargement. With EV demand softening and financial uncertainty rising, Tesla faces stress to ship record-breaking gross sales within the second half of 2025 to satisfy CEO Elon Musk’s goal of resuming annual development.
The Street Forward: Neue Klasse vs. Tesla’s Mannequin 2
BMW’s future hinges on the upcoming Neue Klasse structure, which debuts in 2026 with the iX3 and i3 electrical fashions. These autos promise quicker charging, higher effectivity, and extra inexpensive 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.
