In a week marked by milestones and shifting market dynamics, the electric vehicle (EV) sector is once again under the spotlight. Tesla, the longtime industry leader, announced on Monday that it has surpassed 3 million global sales of its Model 3 sedan since the car's debut in 2017, according to Reuters. This achievement, while significant, comes at a time when the company is confronting declining sales and preparing to release what many analysts expect to be weaker-than-usual quarterly earnings.
The news of Tesla’s milestone was confirmed just days ahead of its second-quarter earnings report, scheduled for release on Wednesday after the market closes. Wall Street expectations for Tesla are subdued this quarter: analysts are forecasting earnings of just $0.41 per share, with revenue projected to decline to $22.36 billion, down from $25.5 billion a year earlier. In fact, Tesla’s total vehicle deliveries for the second quarter of 2025 stood at 384,122—a 13.5% drop from the same period last year, as reported by CNBC. Even more telling, this marks the second consecutive quarter of falling sales for the electric-car giant.
Delving deeper into the numbers, Tesla delivered 48,803 Model 3 sedans in the June quarter, a figure that lags behind the Model Y, which saw 86,120 units produced in the same period. The Model Y has clearly emerged as the company’s volume driver, especially in the Chinese market, where Tesla is now preparing to launch a new six-seater version of the Model Y Long Range, dubbed the Model Y L. A recent government filing revealed that the Model Y L will feature a longer 3,040 mm wheelbase, offering more space in the third row—a move aimed directly at Chinese families seeking larger vehicles. Production is expected to take place at Tesla’s Shanghai factory, with a fall 2025 release on the horizon.
But Tesla’s product updates aren’t limited to new models. The company has also made notable improvements to its existing lineup. The Model 3 Long Range All-Wheel Drive (AWD) now comes standard with the acceleration boost package, cutting the 0–100 km/h sprint to just 3.8 seconds and extending the car’s range to 753 kilometers. This performance bump comes with a price increase, bringing the Model 3 Long Range AWD to 285,500 yuan. Meanwhile, the Model Y Long Range now boasts a 750-kilometer range, but its price remains unchanged. For consumers looking to get behind the wheel quickly, delivery wait times for both vehicles have shortened to a mere one to three weeks, a sign that Tesla’s supply chain and production processes are running smoothly, at least for now.
Despite these advancements, retail sentiment for Tesla has been lukewarm. According to Stocktwits, message volume about the company was low, and overall sentiment was described as ‘neutral’ in the days following the sales milestone announcement. The muted response from retail investors likely reflects broader concerns about Tesla’s near-term growth prospects and the increasingly competitive EV landscape.
While Tesla grapples with declining sales and shifting consumer sentiment, Xiaomi—better known for its smartphones and consumer electronics—has quietly been making waves with its own electric vehicle business. According to AFP, Xiaomi’s EV division delivered a strong performance in the second quarter of 2025, a result attributed to the company’s strategic focus on premiumization and operational efficiency. This pivot toward higher-end offerings and tighter control over costs appears to be paying off, positioning Xiaomi as a credible contender in the premium EV segment.
Xiaomi’s approach stands in contrast to Tesla’s current challenges. The Chinese tech giant has leveraged its reputation for value and innovation, but is now emphasizing quality and luxury to capture a larger share of the fast-evolving EV market. The company’s strong quarterly performance suggests that its strategy is resonating with consumers, particularly in China, where demand for premium electric vehicles continues to grow. As more companies enter the fray, the competition is forcing established players like Tesla to continuously adapt—whether by launching new models like the Model Y L or by upgrading existing vehicles to offer better range and performance.
It’s not just the automakers who are feeling the heat. The broader consumer landscape is also facing its own set of challenges, as illustrated by a string of high-profile product recalls affecting major U.S. retailers. Costco, one of America’s largest warehouse chains, recently issued alerts for several nationwide recalls, including food and pool products that pose potential health and safety risks. The U.S. Food and Drug Administration (FDA) has reiterated that foodborne illness outbreaks and unsafe consumer goods remain leading causes of preventable hospitalizations and injuries in the country.
Among the recalled products is the Pura 4™ diffuser, which was voluntarily withdrawn by Pura after discovering that magnets inside the front cover could detach and pose a serious health risk if swallowed. While no injuries have been reported, the company is offering free replacement covers and has advised consumers to keep the device out of reach of children and pets. Bestway and Intex Recreation, two major pool manufacturers, have also recalled certain aboveground pool models sold at Costco due to the risk of children using external compression straps as footholds to climb into the pools unsupervised—a significant drowning hazard. Both companies are providing free repair kits and urging customers to restrict pool access until the issue is resolved.
Food safety has also come under scrutiny, with Mondelēz Global recalling select 40-count cartons of RITZ Peanut Butter Cracker Sandwiches sold at Costco. The recall was initiated after it was discovered that some packages were incorrectly labeled as the cheese variety, potentially exposing individuals with peanut allergies to serious health risks. Consumers are advised to return affected products for a full refund and to contact Mondelēz for additional support.
All of these recalls serve as a reminder of the complex web of safety, quality, and regulatory challenges that face both established and emerging brands. Whether in the high-stakes world of electric vehicles or the everyday products lining supermarket shelves, consumer trust hinges on a company’s ability to deliver not just innovation and value, but also reliability and transparency.
As Tesla and Xiaomi chart their respective courses through the turbulent waters of the EV market, and as retailers like Costco work to maintain customer confidence amid product recalls, one thing is clear: the race for consumer loyalty is more competitive—and more consequential—than ever.
