Tesla reported a sharp decline in deliveries from January to March, with many thinking Musk is to blame.
Tesla has always brought out strong feelings. Nowhere is it more obvious than the automaker’s stock fluctuations on Wednesday. A sink-rise-sink pattern coincided with delivery reports, news that Musk might drop DOGE, and then tariff news. When the dust settled, though, the numbers speak for themselves: Tesla tallied nearly 50,000 fewer deliveries in Q1 2025 compared to Q1 2024.
Tesla
View the 3 images of this gallery on the
original article
The worst sales in nearly three years
Compared to Q1 last year, Tesla delivered 13% fewer vehicles in the first quarter of 2025. Wednesday, the automaker claimed it delivered 336,681 cars so far this year, a clear drop from the nearly 400,000 delivered in the same time frame in 2024. It also signifies a drop of around 50,000 vehicles year over year, and represents the largest sales decrease in the company’s two decade history. However, it should be noted that technically, Q2 of 2012 saw a more dramatic loss of revenue — 41%, as the then-fledgling automaker struggled to bring the Model S to market and align itself in collaborative efforts with other OEMs. Although Tesla has largely reported year-over-year sales growth, last year marked a nearly 100,000-unit decline, the first serious decline since the company’s inception.
Related: BMW Group’s First Quarter Earnings Show EV Sales Are Booming
Experts cite a variety of concerns, but, as usual, Elon Musk is at the center of them
Analysts are united on one front: this kind of sales decline isn’t good news for Tesla. But, it’s likely a combination of a few different reasons. For one, the Model Y update could have impacted production, which would also negatively affect sales. That indeed could be partially true, as Tesla produced 362,615 vehicles in Q1 2025, compared to 433,000 in Q1 of 2024 and 459,000 in the last quarter of 2024. Tesla itself claims the “loss of several weeks of production” due to the Model Y changeover. The automaker did not make any mention of the widespread vandalism and protests taking place at its many stores across the United States. Nor did it mention the controversy the brand’s CEO, Elon Musk, has made a habit of attracting, but it’s impossible to suggest there isn’t a negative side effect there.
Tesla
Final thoughts
Shrinking demand overseas, the introduction of steep US tariffs that will lead many consumers to press pause on major purchases, and the alienation of some of its staunchest supporters are just some of the battles Tesla is facing. It’s not quite “the end is nigh,” but we doubt anyone is expecting a drastic turnaround in Q2 of 2025. We also still don’t know what the brand’s balance sheet looks like. While it’s likely to reflect the drop in sales, it’s possible that revenue remains less impacted than the deliveries suggest. We’ll have to wait until later in the month for those figures.