Tesla delivered 384,122 vehicles worldwide in the second quarter, falling roughly 5,000 short of Wall Street expectations and 13.5% below the same period a year earlier. The result marks the company’s second consecutive year-on-year decline in quarterly deliveries as it contends with intensifying competition and brand headwinds. Total production reached 410,244 vehicles, leaving inventories elevated even as Model 3 and Model Y cars made up almost all output. The automaker also reported record energy-storage deployments of 9.6 gigawatt-hours for the quarter, underscoring its push to diversify revenue beyond passenger cars. Regional data highlight the pressure on Tesla’s core markets. Industry group ACEA said new-car registrations of Tesla models in the European Union, United Kingdom and EFTA countries fell 27.9% in May—its fifth monthly drop—while overall battery-electric registrations in the region rose 27.2%. Germany, once Tesla’s largest European market, saw June registrations plunge 60% to 1,860 units, although the United Kingdom registered a 12% rise to 7,891 vehicles after deliveries of an updated Model Y. In China, shipments from Tesla’s Shanghai plant edged 0.8% higher year on year to 71,599 vehicles in June, ending an eight-month slide, but second-quarter sales in the country were still 6.8% lower than a year earlier. Analysts say lower-priced Chinese rivals and political backlash against Chief Executive Officer Elon Musk continue to erode demand, leaving Tesla on track for a possible second straight annual decline in global deliveries ahead of its earnings report later this month.