Tesla announced a notable decline in vehicle deliveries for the first quarter of 2025, totaling 336,681 units, a 13% drop compared to 386,810 deliveries in Q1 2024. This decline in deliveries came despite the production of 362,615 vehicles during the same period.
Tesla's delivery numbers failed to meet analysts' projections, which anticipated between 377,592 and 407,900 deliveries for the quarter, as reported by sources including Insider Monkey. According to the company, disruptions in production linked to the Model Y assembly line overhaul significantly contributed to the shortfall, along with global criticism of CEO Elon Musk’s political activities.
The disappointing delivery figures led to a decline in Tesla's stock as investors expressed concern over the broader reputational impact. The company saw substantial year-on-year declines in major markets, with European sales falling nearly 43% and a significant decrease reported in China as well. Tesla has not only highlighted its production challenges but is also facing demand issues tied to Musk's polarizing public persona.