Tesla’s first-quarter vehicle deliveries dropped by 13% year-over-year, marking the largest quarterly decline in the company’s history. The electric vehicle (EV) pioneer delivered 336,681 vehicles between January and March 2025—down from 386,810 units during the same period last year. This steep drop highlights intensifying market pressures, growing global competition, and a potential consumer shift amid political controversies surrounding CEO Elon Musk.
- 13% sales decline is the largest in Tesla’s history.
- Production paused for Model Y updates across all factories.
- Political controversies and vandalism may be contributing to weakened demand.
- BYD overtakes Tesla in EV sales with stronger momentum.
- Stock down 44% since December highs as market confidence dips.
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Q1 2025: Tesla’s Worst Quarter in Nearly Three Years
- Total deliveries: 336,681 units
- Year-over-year change: -13% (approx. 50,000 fewer vehicles)
- Analyst expectations: As low as 350,000 (still above actual performance)
Tesla’s performance in Q1 2025 represents its weakest sales quarter in nearly three years. Analysts had anticipated a decline, but the actual results underperformed even the most conservative forecasts.
Political Backlash & Vandalism May Be Impacting Sales
Tesla has faced recent protests and acts of vandalism linked to Musk’s controversial leadership in the Department of Government Efficiency and his support of former President Donald Trump. Demonstrations outside Tesla showrooms and damage to Tesla charging infrastructure may have deterred some would-be buyers.
While Tesla did not address these political factors in its earnings update, the company cited a temporary production halt during a Model Y transition, which paused operations across all four of its manufacturing facilities for several weeks.
“Thank you to all our customers, employees, suppliers, shareholders and supporters who helped us achieve these results,” Tesla stated.
Tesla Struggles in Europe Amid Growing EV Adoption
According to the European Automobile Manufacturers’ Association, Tesla’s European sales plunged by 49% in the first two months of the quarter, despite a 28% overall rise in EV sales across the continent. Analysts believe this may reflect growing resistance to Musk’s political commentary, particularly in Germany and the United Kingdom, where his vocal support for far-right parties has stirred controversy.
BYD Surges Ahead in Global EV Sales
Tesla is also feeling pressure from fierce global competitors, especially in China, where automaker BYD continues to gain market share:
| Metric | Tesla (Q1 2025) | BYD (Q1 2025) |
|---|---|---|
| EV Deliveries | 336,681 | 416,000+ |
| YoY Growth | -13% | +39% |
| Market Position | 2nd globally | 1st globally |
BYD’s EVs are generally more affordable and now benefit from innovations like a fast-charging system that adds 250 miles of range in just five minutes. While BYD currently lacks a presence in the U.S. market, it remains a dominant force in Asia and is positioned to outpace Tesla in full-year global EV sales by 2025.
Tesla Stock Slides as Investor Confidence Wanes
Tesla stock has experienced a sharp downturn. After nearly doubling in value post-election amid expectations of favorable policy alignment with President Trump, shares have since dropped 44% from their December peak. Following the Q1 delivery report, TSLA stock fell 5% in pre-market trading.
