Tesla is facing one of its toughest periods in recent years. In the first quarter of 2025, the company delivered 336,681 vehicles, down 13% year-over-year and well below investors' expectations. This marks the sixth consecutive month of declining sales.
📉 Production and Deliveries Fail to Impress
Compared to 386,810 deliveries in Q1 2024, Tesla’s numbers took a sharp hit. Internally, Tesla expected to deliver 377,590 units, while analysts forecasted between 360,000 and 370,000. None of those targets were met.
Production also fell short — Tesla built only 362,615 vehicles, down from 433,371 the previous year. The reason? Planned factory shutdowns for production line upgrades tied to the refreshed Model Y, which is supposed to be the brand’s mainstay. But so far, it's been a disappointment.
China: Musk Under Fire as Rivals Surge
In the world’s largest EV market — China — Tesla sold 78,828 vehicles in March, a 11.5% drop from the same period last year. Meanwhile, Chinese competitors are thriving:
BYD sold 371,419 EVs in March (+23%)Geely delivered 119,696 units (+167%)
But Elon’s troubles in China go beyond the numbers. After heavily backing Donald Trump and his government shakeups, Musk now faces boycotts, protests, and even attacks on Tesla sites in China.
Europe: Tesla’s Image Damaged by Politics
Elon Musk’s public support for Germany’s far-right AfD party in February further tarnished Tesla’s brand image in Europe. The impact is already visible:
In Germany, Tesla’s battery EV market share plunged from 16% to just 4%In 15 European countries combined, Tesla’s share dropped to 17.9%, down from 27.2% a year ago
🚗 Model Y Was Supposed to Save the Quarter — It Didn't
Elon Musk still believes the Model Y will be the world’s best-selling car this year. In reality, Tesla delivered only 323,800 Model 3 and Y vehicles combined in Q1. Production totaled 345,454. The rest of Tesla’s lineup (including Cybertruck) contributed just 12,881 units.
📉 Tesla Stock Suffers Worst Quarter Since 2022
Down 36% in Q1 2025$460 billion wiped out in market valueAnother 3.04% drop in pre-market trading on Wednesday morning
Tesla also didn’t break down sales by model or region, as usual — so no one knows exactly where the bleeding is worst. But the signs are clear: declines in China, collapse in Germany, and a weak Model Y relaunch all paint a troubling picture.
🛑 Conclusion: Tesla Faces a Crisis of Confidence
As Chinese and European competitors gain momentum, Tesla is battling on multiple fronts — technical, commercial, and political. And while Musk remains optimistic, the market expects far more than Tesla is currently delivering.
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