Overview

• Tesla delivered 336,681 vehicles in Q1 2025, falling 32% from the previous quarter and significantly below consensus estimates of 377,590.
• Production for the quarter totaled 362,615 vehicles, also below expectations, with analysts citing demand challenges and operational disruptions.
• Elon Musk's polarizing political role, including his involvement in the U.S. administration, is seen as a factor in weakening Tesla's brand and European sales.
• Tesla's stock dropped to $266 following the disappointing delivery report and the announcement of new U.S. tariffs impacting the EV market.
• Plans to produce a lower-cost Model Y in Shanghai next year, under the project codename 'E41,' aim to address affordability and demand concerns.