Tesla’s European Q2 Sales Surge While U.S. Demand Plunges

Tesla’s second-quarter deliveries rose 25% year-over-year globally, driven by a 40% spike in Europe where soaring gasoline prices turbocharged EV demand. The surge contrasts sharply with the U.S., where Tesla’s sales are estimated to have fallen 20% in Q2 to 114,629 vehicles, according to Cox Automotive.

For the first half of 2026, U.S. deliveries dropped 15% to 231,929, while Automotive News pegged the decline at 8% in Q2 to 115,000 and 12% for the first half to 225,000. The divergence highlights Tesla’s struggles in the U.S. market, where the expiration of federal EV tax credits and broader affordability concerns continue to weigh on demand.

Deutsche Bank’s June 30 research note estimated Europe’s gain at 40%, while China saw a modest 3% increase. The data underscores Tesla’s reliance on international markets as domestic growth stalls.

Meanwhile, the broader auto industry faces rising concerns over extended loan terms, with a record 24% of U.S. consumers now opting for 84-month loans or longer to finance new and used vehicles. Average loan durations hit 70.4 months for new cars and 70.1 months for used ones in Q2, up from the prior year, according to Edmunds.

Experian reported that nearly 36% of new-vehicle loans in Q1 exceeded 72 months, up 5 points year-over-year, while used-vehicle loans over 72 months rose to 32%. Dealers warn that pushing terms to 96 months could saddle buyers with negative equity, though economic pressures may force their hand.

Elsewhere, Rivian raised its 2026 delivery forecast to between 65,000 and 70,000 vehicles, citing strong demand for its R1 models, electric delivery vans, and the newly launched R2 SUV. The R2, which began customer deliveries in June, is central to Rivian’s growth strategy and is expected to compete directly with Tesla’s Model Y.

Rivian’s upward revision follows a 2025 slump after federal EV tax credits expired, but the company now bets on the R2’s lower price point to drive volume. Analysts polled by Visible Alpha project 63,138 deliveries for 2026.

In South Africa, Chinese automaker Chery formally took over Nissan’s Rosslyn plant in a deal announced earlier this year, marking a strategic retreat by Nissan and an expansion by Chery. The Chinese giant plans to invest millions upgrading the facility ahead of production resuming in mid-2027, aiming to establish South Africa as its African hub for manufacturing, exports, R&D, and regional operations.

Chery committed to retaining all 692 existing employees and creating nearly 3,000 direct and indirect jobs across manufacturing, supply chains, and related services.