Tesla Faces Steep Declines in Sales and Market Share in Q1 2025

Global deliveries dropped 13% year-over-year as competition intensifies and Elon Musk's political involvement damages the brand.

Tesla's Q1 2025 global deliveries fell to 336,681 vehicles, marking a 13% year-over-year decline and the company's lowest quarterly performance in three years.
Sales in China, Tesla's second-largest market, dropped 22%, with 172,754 vehicles delivered, as local competitors like BYD gained ground with more affordable and advanced EVs.
European sales plummeted, with Germany experiencing a 62.2% year-over-year decline, reflecting Tesla's eroded market share in the region.
Elon Musk's political affiliations, including his role in the Trump administration and support for far-right European parties, have sparked protests, vandalism, and brand backlash, further hurting sales.
Financial analysts have lowered Tesla's stock price targets, citing weak demand, production challenges, and growing competition as key concerns for the company's future.