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Tesla Reports 13% Drop in Q1 Sales, Missing Analyst Expectations

The EV leader's performance marks its worst quarter since 2022, with production delays, political backlash, and intensifying competition weighing heavily on its results.

Officers from Ottawa Police Service are seen at a Tesla Service and Showroom centre after it was damaged with pink spray paint in Ottawa, on Monday, March 31. Tesla reported a significant drop in vehicle deliveries for the first quarter of 2025, with a 13% decline compared to the same period last year. 
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Overview

  • Tesla delivered 336,681 vehicles in Q1 2025, a 13% year-over-year decline, falling short of analyst estimates ranging from 360,000 to 408,000 units.
  • The company cited production disruptions from the rollout of the refreshed Model Y, which caused several weeks of lost manufacturing time, as a key factor in the decline.
  • Sales in key European markets, including France, Sweden, and Denmark, dropped significantly, contributing to Tesla's market share in Europe falling from 17.9% to 9.3%.
  • Elon Musk's political involvement, including his advisory role in the Trump administration, has sparked protests, boycotts, and vandalism, further damaging Tesla's brand and impacting sales.
  • Tesla's stock has fallen over 30% year-to-date, reflecting investor concerns about declining sales, competitive pressures, and ongoing backlash against Musk's leadership.