Tesla’s global EV deliveries declined for the second consecutive quarter, but it’s BMW’s U.S. electric vehicle sales that saw the steepest drop in Q2 2025. According to Tesla’s latest earnings report, the automaker delivered 384,122 electric vehicles worldwide in the second quarter of 2025—a 13% year-over-year decline. While still the world’s top EV manufacturer by volume, Tesla’s quarterly slowdown reflects an 18-month trend of demand challenges and intensifying global competition. Cybertruck sales also continue to underperform, with just ~5,000 units delivered in Q2 and an annualized rate well below initial targets. Keep in mind that Tesla only offers concrete sales numbers for the Model 3 and Y models.
But BMW’s U.S. EV sales tell an even more dramatic story. In Q2 2025, BMW sold 11,094 battery electric vehicles in the U.S.—a 21.2% decline from the same period in 2024. Year-to-date, the German automaker has delivered 24,632 BEVs, just shy of last year’s first-half total of 24,794.
Here’s how each BMW EV model performed in Q2:
- BMW i4: 5,724 units (–19%)
- BMW i5: 1,434 units (–43.6%)
- BMW i7: 820 units (–11.7%)
- BMW iX: 3,116 units (–12.1%)
The BMW i5, a key competitor to the Tesla Model S and Mercedes EQE, experienced the sharpest decline. Only the i4 posted year-to-date growth (+10.7%) thanks to its sporty design and accessible price point.
Why Are BMW EV Sales Falling?
Several factors could be contributing to BMW’s declining U.S. EV performance:
- Loss of Federal EV Tax Credit: As of mid-2025, none of BMW’s EVs qualify for the full $7,500 tax credit due to battery sourcing restrictions—unlike Tesla, which still benefits from full incentives on the Model 3 and Model Y.
- Mid Lifecycle for Some Products: BMW’s current electric vehicles are built on modified internal combustion platforms, aside from the iX. Most of these products are already 2-4 years old with new facelifts being launched this year or within the next couple of years. Things will change next year when the all-new Neue Klasse EVs with next-generation tech will arrive.
- Stiffening Competition: BMW is battling traditional rivals like Mercedes-Benz, Audi and Porsche, along with EV-only OEMs like Tesla, Lucid and Rivian.
Tesla Still Dominates, Despite Challenges
In the U.S., Tesla’s estimated Q2 2025 EV sales surpassed 175,000 units, making it the clear leader. Most of those sales came from the Model Y and Model 3, which remain eligible for tax credits and benefit from Tesla’s proprietary Supercharger network.
Globally, Tesla’s EV growth has stalled. The automaker delivered 1.79 million vehicles in 2024, slightly down from 1.81 million in 2023—its first year of flat growth after a decade of expansion. With EV demand softening and economic uncertainty rising, Tesla faces pressure to deliver record-breaking sales in the second half of 2025 to meet CEO Elon Musk’s target of resuming annual growth.
The Road Ahead: Neue Klasse vs. Tesla’s Model 2
BMW’s future hinges on the upcoming Neue Klasse architecture, which debuts in 2026 with the iX3 and i3 electric models. These vehicles promise faster charging, better efficiency, and more affordable pricing—built from the ground up as EVs.
Tesla, meanwhile, is working on its highly anticipated $25,000 “Model 2”, which could shake up the global EV market if it reaches production. But with Cybertruck demand lagging and Model S/X volumes shrinking, execution remains critical.