Tesla's Q1 Deliveries Drop 13% Amidst Stock Plunge
Palo Alto, California, Wednesday, 2 April 2025.
Tesla deliveries in Q1 2025 fell 13%, marking the worst quarter since 2022. Contributing factors include supply chain issues and political backlash, leading to a decline in investor confidence.
Delivery Numbers Fall Short of Expectations
Tesla (TSLA) reported 336,681 vehicle deliveries in the first quarter of 2025, significantly below analyst expectations of 377,590 [1]. The company’s production reached 362,615 vehicles during this period, with the majority being Model 3 and Model Y vehicles at 345,454 units [1]. The Cybertruck and other models accounted for just 12,881 deliveries [1].
Market Impact and Stock Performance
The disappointing delivery numbers have contributed to Tesla’s worst quarterly stock performance since 2022, with shares plunging 36% in Q1 2025, erasing approximately $460 billion in market value [2]. Wedbush Securities analyst Dan Ives characterized the results as ‘a disaster on every metric’ [1]. The decline has occurred amid broader market challenges, with the Nasdaq dropping 10% during the same period [2].
Global Market Challenges
Tesla’s struggles are particularly evident in key international markets. In Europe, the company’s market share has contracted dramatically, falling to 9.3% in Q1 2025 from 17.9% a year earlier [1]. The German market has shown an even steeper decline, with market share dropping to 4% from 16% [1]. In China, Tesla faces mounting competition from domestic manufacturers like BYD, resulting in an 11.5% year-over-year decline in March sales [1].
Manufacturing and Political Headwinds
The company attributes some production challenges to planned factory shutdowns for upgrading manufacturing lines, particularly for a redesigned Model Y [1]. However, analysts suggest that approximately 30% of the delivery weakness stems from brand damage related to CEO Elon Musk’s political activities and role in the Trump administration [3]. Deutsche Bank analysts note that brand damage in Western Europe and North America is affecting demand, though the full impact remains difficult to quantify [4].