Tesla's quarterly sales targets fell more than expected as the brand struggles to deal with increased competition around the world and backlash against CEO Elon Musk.

In the second quarter of the year, Tesla produced more than 410,000 electric vehicles and delivered over 384,000 models.

Of these, 373,728 vehicle deliveries came from interest in the Model 3 and Model Y, while just over 10,000 came from other models, including the S, X, Cybertruck and Semi.

This is a huge 13.5 per cent drop compared to the 443,956 models sold a year ago. Even analysts had predicted that Tesla would sell around 394,000 vehicles.

Experts have suggested that Elon Musk's political involvement has impacted Tesla sales

Tesla will post its full financial results for the second quarter on July 23, which will be accompanied by a live Q&A with Tesla management.

Despite missing analysts' predictions, Tesla stocks rose an impressive seven per cent in premarket trading. However, shares have fallen more than 25 per cent this year.

Seth Goldstein, senior equity analyst at Morningstar, said: "The market is reacting to the deliveries not being as bad as potentially thought with multiple analysts cutting their forecasts over the past week."

The brand has been battered by controversy since the start of the year as CEO Elon Musk became more involved in politics, aligning himself with US President Donald Trump, Reform UK's Nigel Farage and the German Alternative für Deutschland.

Many protested against the brand for Musk's actions as head of the Department of Government Efficiency (DOGE) and his support for controversial far-right figures.

This led to sweeping protests around the world at dealerships and showrooms, which continue to this day. The global Tesla Takedown movement has called for a boycott of Musk and his business ventures in response to his political actions.

Analysts from Wall Street predict that Tesla will see a second consecutive annual sales decline in 2025, despite Musk's target to return to growth.

This would require Tesla to sell more than one million units in the second half of the year, which would be a record for Tesla. Analysts warned this would be a "tough challenge".

Major car brand admits it has 'nothing to sell' as it rules out producing electric vehicle
Police launch July crackdown against motorists who face £5,000 fine and 12-month driving ban
Wimbledon urged to scrap SUV deal with Jaguar Land Rover over major safety and pollution fears

Tesla is attempting to turn fortunes around with the release of its upgraded Model Y flagship, complete with an improved range and Cybertruck-inspired design.

It is also believed that Tesla plans to offer a cheaper, entry-level electric car that would refresh the ageing lineup and convince more drivers to invest in electric.

Elon Musk has touted the development of Tesla's robotaxi programme, which recently launched in Austin, Texas.

It aims to become a frontrunner in the autonomous taxi industry, which is currently dominated by Google-owned Waymo, Amazon-backed Zoox and Cruise, which is operated by General Motors.

The new Model Y began deliveries in the UK last month

In the UK, Tesla has sold 15,002 vehicles in the first five months of the year, retaining 1.76 per cent of the new car market, according to the Society of Motor Manufacturers and Traders (SMMT).

However, this is a concerning 7.8 per cent drop compared to the previous year, when it sold 16,272 vehicles and had almost two per cent of the market share.

It now faces stiff competition from legacy manufacturers increasing their electric vehicle offering, as well as emerging Chinese manufacturers like BYD, Omoda and Jaecoo.

BYD, in particular, is less than 200 sales behind Tesla, based on the latest data. The Chinese automotive brand has seen a 571 per cent increase in sales compared to last year.