Tesla Reports 13% Drop in Q1 Deliveries as Challenges Mount

Production delays, falling sales in key markets, and Elon Musk's political controversies weigh heavily on Tesla's performance and brand image.

Tesla's Q1 2025 vehicle deliveries declined 13% year-over-year, with production dropping by 16% in the same period.
European vehicle registrations fell 49% in the first two months of 2025, with February sales in Germany plummeting 76%.
In China, Tesla's sales dropped nearly 50% in February, while local competitors like BYD gained market share.
Production disruptions tied to Model Y upgrades and an aging lineup have contributed to Tesla's struggles to meet demand.
Elon Musk's political controversies, including his alignment with far-right figures, have led to protests and boycotts, particularly in Europe, further damaging Tesla's reputation.