Tesla reported a decline in vehicle deliveries for the first quarter of 2025, with 336,681 vehicles delivered—down 13% from the same period last year.
The report comes as the electric vehicle maker faces increasing competition, factory shutdowns, and external challenges affecting its brand.
The announcement, released two days after Tesla’s stock closed out its worst quarter since 2022, led to a 4% drop in share value following the news.
Key Figures:
Total Q1 2025 Deliveries: 336,681 vehicles
Total Q1 2025 Production: 362,615 vehicles
Q1 2024 Deliveries (for comparison): 386,810 vehicles
Investors had expected deliveries to fall between 360,000 and 370,000 vehicles, with Tesla’s own consensus estimate at around 377,590. The lower-than-anticipated numbers have fueled concerns about the company’s growth trajectory.
Wedbush Securities analyst Dan Ives called the report a “fork in the road moment” for Tesla, describing the results as disappointing across multiple metrics.
Several factors contributed to the decline in Tesla’s deliveries:
Factory Shutdowns: Tesla temporarily halted production at multiple facilities to upgrade manufacturing lines for the redesigned Model Y, reducing output during the quarter.
Increased Competition: Chinese automaker BYD continues to gain market share, reporting over 416,000 electric vehicle sales in the same period, a 39% increase from the previous year. Tesla has also faced growing competition in the European market, where its market share fell from 17.9% to 9.3% across 15 countries.
Brand and Political Controversy: Tesla has faced backlash related to CEO Elon Musk’s political involvement, including protests, boycotts, and vandalism targeting Tesla showrooms and charging stations. In Germany, where Musk has supported the far-right AfD party, Tesla’s market share in battery electric vehicles dropped from 16% to 4%.
Despite the challenges, Musk has expressed optimism about Tesla’s future, recently stating that the Model Y is expected to remain the world’s best-selling car. The company is also planning to release a new, more affordable model later this year, which could help boost sales.
Tesla shares have declined 36% in the first quarter of 2025, marking the company’s third-largest drop since going public. The stock had surged following the 2024 US presidential election, with investors anticipating favorable policies due to Musk’s ties to the Trump administration. However, recent trends have raised concerns about the impact of Musk’s leadership on Tesla’s brand and market position.
