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Tesla faced a significant downturn in the first quarter of 2025, with electric vehicle deliveries falling by 13 percent, marking their steepest decline to date. The automotive giant delivered 336,681 vehicles, significantly lower than the 386,810 units sold during the same period in 2024, representing a decrease of 50,000 deliveries.
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Tesla shares slump in pre market after significant miss on car sales in Q1.
336,681 vehicles delivered, about 40,000 down on expectations, and 50k down or 13% down on Q1 last year… pic.twitter.com/j2mlqH9ORj
— Faisal Islam (@faisalislam) April 2, 2025
Multiple factors contributed to this unprecedented sales slump, including public reaction to CEO Elon Musk’s leadership and intensifying market competition. Musk’s role as head of the Department of Government Efficiency (DOGE) and his alignment with President Trump has created friction with Tesla’s traditionally progressive customer base. The company has faced protests and vandalism at its locations, potentially discouraging prospective buyers.
The decline surpassed analysts’ conservative predictions of 350,000 deliveries. European markets showed particularly concerning results, with Tesla experiencing a 49 percent sales reduction in the first two months of the quarter, despite the region’s overall 28 percent growth in EV sales. This downturn coincided with controversy surrounding Musk’s support for right-wing political movements in Germany and the UK.
Market competition has also intensified, particularly in China, Tesla’s second-largest market after the US. Chinese manufacturer BYD has emerged as a formidable competitor, delivering 416,000 pure electric vehicles this quarter, representing a 39 percent increase year-over-year and overtaking Tesla’s global sales leadership. BYD’s success stems from its competitive pricing and innovative features, including a new charging system capable of providing 250 miles of range in just five minutes.
While Chinese manufacturers haven’t yet penetrated the US market significantly, current trends suggest Tesla might lose its position as the global EV sales leader by the end of 2025.
