Tesla’s vehicle deliveries declined by 13% in the first quarter, reaching 336,681 units, according to the company’s report. This drop is a result of the company facing waves of protests and boycotts in response to CEO Elon Musk’s political antics and work in the Trump administration.
The decline was not unexpected, as investors had predicted deliveries between 360,000 and 370,000 vehicles. However, Tesla’s actual numbers fell short of expectations, with some analysts calling it a “fork in the road moment” for the company.
Tesla produced 362,615 vehicles during the quarter but did not break out sales and production by model or region. The Model Y was the most popular car, with deliveries of 323,800 units and production of 345,454 units.
The decline is attributed to various factors, including an onslaught of EV competition and reputational damage. In the first quarter, Tesla faced planned partial shutdowns in some factories, allowing upgrades to manufacturing lines for a redesigned Model Y SUV.
Musk recently stated that he expects the Model Y to be the “bestselling car on Earth again this year.” However, the company must contend with increased competition and damaging rhetoric from Musk’s political actions. In 2025, Tesla reported a significant drop in market share across European countries, with some models experiencing a decline in sales.
Despite the challenges, Tesla has taken steps to address its issues, including slashing costs and eliminating regulations as part of President Trump’s Department of Government Efficiency. The company is now focusing on upgrading its manufacturing lines to meet growing demand for electric vehicles.
Source: https://www.cnbc.com/2025/04/02/tesla-tsla-q1-2025-vehicle-delivery-and-production-numbers.html