Tesla Reports Sharp Decline in Q1 Sales Amid Ongoing Challenges
Sales plunge 13% to lowest level since Q2 2022, influenced by production changes and weakened demand.
Tesla has announced a significant decrease in sales for the first quarter of 2025, with figures falling 13% compared to the same period last year.
The electric vehicle manufacturer reported deliveries of 336,681 vehicles from January to March, marking its weakest sales performance since the second quarter of 2022.
The company produced a total of 362,615 vehicles during the quarter.
This production figure was affected by extensive overhauls at Tesla's factories worldwide aimed at adapting to a redesigned Model Y, which led to disruptions that impacted supply.
Despite taking measures to stimulate demand, including significant discounts and zero financing offers, the sales figures did not meet the expectations of industry analysts, who anticipated deliveries closer to 390,000 vehicles.
Tesla's performance has been scrutinized amid ongoing scrutiny of CEO Elon Musk's political engagements, which have provoked protests across Europe and Asia.
This context, combined with a reported 11.5% year-on-year drop in sales in China, has contributed to the weaker demand globally.
Musk’s comments and actions have also drawn mixed reactions from the public and investors, influencing customer sentiment.
In a statement, Tesla expressed gratitude to its customers and stakeholders, acknowledging the production challenges while maintaining optimism about the ramp-up of the new Model Y. The company emphasized that the transition at its factories was necessary for the long-term viability of its product lineup.
The electric vehicle manufacturer reported deliveries of 336,681 vehicles from January to March, marking its weakest sales performance since the second quarter of 2022.
The company produced a total of 362,615 vehicles during the quarter.
This production figure was affected by extensive overhauls at Tesla's factories worldwide aimed at adapting to a redesigned Model Y, which led to disruptions that impacted supply.
Despite taking measures to stimulate demand, including significant discounts and zero financing offers, the sales figures did not meet the expectations of industry analysts, who anticipated deliveries closer to 390,000 vehicles.
Tesla's performance has been scrutinized amid ongoing scrutiny of CEO Elon Musk's political engagements, which have provoked protests across Europe and Asia.
This context, combined with a reported 11.5% year-on-year drop in sales in China, has contributed to the weaker demand globally.
Musk’s comments and actions have also drawn mixed reactions from the public and investors, influencing customer sentiment.
In a statement, Tesla expressed gratitude to its customers and stakeholders, acknowledging the production challenges while maintaining optimism about the ramp-up of the new Model Y. The company emphasized that the transition at its factories was necessary for the long-term viability of its product lineup.
