Tesla sales jumped last quarter in a possible sign the worst of the Musk
backlash is behind it
[July 03, 2026] By
BERNARD CONDON
NEW YORK (AP) — Tesla car sales surged in the past three months in a
possible sign damage from a customer revolt over Elon Musk and boycotts
are mostly behind it.
The electric vehicle maker run by Musk reported Thursday that it
delivered 480,126 cars to customers, a jump of 25% over the 384,122
figure a year ago when many Europeans refused to buy his cars because of
his embrace of far-right political candidates there.
The second-quarter sales, the second straight gain in a row, also came
in much higher than the 401,000 that Wall Street analysts had been
expecting, according to a FactSet survey.
It's a big turnaround from just a few months ago when Tesla reported
sales had fallen in 2025 for a second year in a row and it had to yield
its crown as the world's largest EV maker to China's BYD.
Tesla’s stock fell sharply in midday trading Thursday, down 6%, an odd
development that Seth Goldstein of Morningstar attributed possibly to
profit-taking by investors after a recent run-up in its shares.
For the second-quarter figures, the company didn't break out results by
country, but an earlier report from European trade groups reported big
sales increases in Europe in May, including a 300% rise in Germany.
The Austin, Texas, company introduced cheaper Model Y and Model 3 models
last year in hopes of boosting sales. In Europe, it also cut the cost of
leasing and loans. Sales were also helped by a surge of EV buying in
general on the continent as gas and diesel prices have risen due to the
Iran war.
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 For future quarters, Tesla hopes to
lure even more Europeans as countries approve use of its driver
assistance feature, available in the U.S., called Full Self-Driving
(Supervised). The Netherlands approved the system in April, followed
by Estonia, Greece and Lithuania.
Sales fell last year amid protests at showrooms in Europe and the
U.S., a Musk figure burned effigy in Milan and vandalism against
Tesla drivers. Customers were angry about him publicly supporting
far-right political candidates in elections. In the U.S., too, many
of Tesla's traditional buyers stopped buying because of Musk's work
heading a Trump administration group cutting government spending.
Tesla was also hurt in the U.S. by the elimination of a tax break
for buying electric vehicles in the fall last year, which added as
much as $7,500 to EV costs. That is still keeping EV buyers away
even as gas prices have risen.
Tesla sales in the U.S. weren't broken out in the latest report, but
research firm Cox Automotive estimates they are still falling fast,
down 20% in the second quarter from the year earlier period.
Amid Tesla struggles last year, Musk managed to shift the narrative
about Tesla's future away from its car business to its robots,
automated driving system and self-driving robotaxis.
Judging from the stock price, investors approve. Shares have fully
recovered from a deep dive early last year, rocketing more than 40%
in the past 12 months.
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