Tesla reported 336,000 vehicle deliveries in the first quarter of 2025, reflecting a 13% decline from the same period last year. This announcement came just two days after the electric vehicle company experienced its worst stock quarter since 2022. Following the news, Tesla shares dropped by 4%.
Key Figures:
- Total deliveries in Q1 2025: 336,681
- Total production in Q1 2025: 362,615
Investor expectations for deliveries ranged between 360,000 and 370,000 vehicles, according to StreetAccount. Tesla’s investor relations team had compiled an estimated consensus of approximately 377,590 deliveries, while prediction market company Kalshi forecasted 352,000 deliveries. For comparison, Tesla reported 386,810 deliveries and 433,371 vehicle production in the first quarter of 2024.
Wedbush Securities analyst Dan Ives, a long-time supporter of Tesla and CEO Elon Musk, described the report as a critical moment for the company. In a post on X, he remarked, “We knew Q1 Tesla deliveries would be soft, but these numbers were bad. We are not going to look at these numbers with rose-colored glasses… they were a disaster on every metric.”
Tesla does not break down sales and production figures by model or region, but it reported producing 345,454 units of its popular Model 3 and Model Y and delivering 323,800 of them by March 31. The company also delivered 12,881 units of its other models, including the Cybertruck.
Challenges and Market Pressures
Throughout the quarter, Tesla faced planned partial factory shutdowns to upgrade production lines for a redesigned Model Y SUV. Elon Musk recently stated in an all-hands meeting that he expects the Model Y to remain the best-selling car globally this year.
However, the company is navigating an increasingly competitive EV market and a brand image crisis. Tesla has encountered protests, boycotts, and acts of vandalism targeting its vehicles and facilities, largely in response to Musk’s political actions and his role in President Donald Trump’s second administration.
Musk, who invested $290 million in Trump’s reelection campaign, currently leads the Department of Government Efficiency (DOGE), where he has enacted sweeping cost reductions, deregulations, and large-scale job cuts in federal agencies. His involvement in European politics has also stirred controversy, particularly his support for Germany’s far-right AfD party during the February elections, which has coincided with Tesla’s declining European market share.
Tesla’s market share in 15 European countries fell from 17.9% in Q1 2024 to 9.3% in Q1 2025, according to EU-EVs.com. In Germany, the decline was even steeper, dropping from 16% to 4%. Meanwhile, Tesla’s China-made EV sales totaled 78,828 units in March, an 11.5% year-over-year decrease, as the company faces mounting competition from local manufacturers like BYD.
Canadian Controversy
Earlier this quarter, Tesla claimed it sold 8,653 EVs in a single weekend in Canada, a move that qualified it for millions in government EV subsidies before the program expired. However, Canada’s transportation minister later froze the payments and launched an investigation into the legitimacy of the reported sales. Tesla has not responded to CNBC’s inquiry regarding whether those figures were included in the Q1 delivery report.
Stock Market Impact
Tesla shares plummeted 36% in the first quarter of 2025, marking their sharpest drop since Q4 2022 and the third-largest decline in the company’s public market history. The downturn erased $460 billion from Tesla’s market capitalization.
