Tesla has announced it delivered 336,681 vehicles in the first quarter of 2025, reflecting a 13% decrease from the same period in 2024. The electric vehicle maker’s performance for Q1 comes shortly after its stock posted its worst quarterly performance since 2022.
Production vs. Market Projections
Although Tesla produced 362,615 vehicles during the first quarter, its delivery figures fell below Wall Street expectations. Analysts had forecasted deliveries to range from 360,000 to 370,000, with Tesla’s internal target set at 377,590. Prediction platform Kalshi had anticipated 352,000 deliveries for the quarter. In Q1 2024, the company delivered 386,810 vehicles and produced 433,371.
Stock Recovery Amid Challenges
Tesla’s stock rose nearly 4% after Politico reported that CEO Elon Musk could soon depart from his role at the Department of Government Efficiency (DOGE). This speculation temporarily eased investor concerns despite broader market declines.
Industry Experts React
Wesh Secudburities’ Dan Ives, typically positive about Tesla, described the results as a “critical moment” for the company. He remarked, “We expected Q1 deliveries to be weaker, but these numbers are disappointing across the board – a disaster on every metric.”
Delivery Breakdown by Model
The majority of Tesla’s deliveries came from its Model 3 and Model Y vehicles, which together accounted for 323,800 units. Additionally, 12,881 units were delivered from other models, including the newly introduced Cybertruck.
Operational Challenges
The quarter was marked by various issues, including factory shutdowns for upgrades, protests, boycotts, and even criminal incidents. Much of this turmoil stemmed from Elon Musk’s involvement in politics, including his significant role in Donald Trump’s administration and his controversial views.
Political Influence and Impact on Tesla’s Reputation
Musk’s political actions, such as donating $290 million to Trump’s re-election campaign and leading DOGE, led to backlash worldwide. In Germany, Tesla’s market share in the battery electric vehicle segment plummeted from 16% in 2024 to just 4% in 2025. In 15 European countries, Tesla’s market share decreased from 17.9% to 9.3%, according to EU-EVs.com.
Performance in China and Canada
In March 2025, Tesla delivered 78,828 vehicles in China, marking an 11.5% year-over-year drop. The company faces stiff competition from local automakers like BYD. In Canada, Tesla recorded 8,653 EV sales during one weekend in January, qualifying for significant government subsidies. However, Canadian authorities have since frozen these payments pending an investigation into the sales data.
Q1 Stock Plunge and Market Capitalization Loss
Tesla’s stock dropped by 36% in Q1, the worst performance since Q4 2022, erasing approximately $460 billion in market value. This marks the third-largest quarterly loss in Tesla’s 15 years as a publicly traded company.
Looking to the Future
Despite the setbacks, Elon Musk remains optimistic, telling employees that the redesigned Model Y will once again become the world’s best-selling vehicle this year. However, investors will be closely monitoring the company for signs of recovery moving forward.
