Tesla Reports 336,000 Vehicle Deliveries in Q1, Marking 13% Drop from Last Year

Tesla reported 336,681 vehicle deliveries in the first quarter of 2025, marking a significant 13% drop compared to the same period last year. The electric vehicle giant’s Q1 results came just two days after its stock closed out its worst quarter since 2022.

Production and Market Expectations

While Tesla produced 362,615 vehicles during the quarter, the delivery numbers fell short of Wall Street estimates. Analysts expected between 360,000 and 370,000 deliveries, with Tesla's internal consensus targeting 377,590. Prediction platform Kalshi forecasted 352,000.

For comparison, Tesla delivered 386,810 vehicles and produced 433,371 in Q1 of 2024.

Stock Rebounds Despite Poor Performance

Tesla shares were last up nearly 4%, recovering slightly after Politico reported that CEO Elon Musk could soon leave his post at the Department of Government Efficiency (DOGE). The speculation brought temporary relief to investors despite a broader decline.

Industry Reaction: 'A Disaster on Every Metric'

Dan Ives of Wedbush Securities, typically bullish on Tesla, described the report as a "fork in the road moment." He added, "We knew Q1 deliveries would be soft but these numbers were bad… a disaster on every metric."

Breakdown of Deliveries by Model

Tesla delivered 323,800 units of its popular Model 3 and Model Y vehicles. An additional 12,881 vehicles were delivered from its other models, including the newly launched Cybertruck.

Manufacturing and Market Challenges

Factory shutdowns for upgrades, protests, boycotts, and even criminal attacks plagued the quarter. Much of the unrest stemmed from CEO Elon Musk’s prominent role in Donald Trump’s administration and his controversial political stance.

Political Influence and Reputational Damage

Musk’s political alignment included a $290 million contribution to Trump’s re-election campaign and leadership of DOGE. His actions triggered backlash globally. In Germany, Tesla’s market share in battery electric vehicles fell sharply to 4% from 16% the previous year.

Across 15 European nations, Tesla’s market share slid to 9.3% from 17.9%, according to EU-EVs.com.

China and Canada Sales Performance

Tesla delivered 78,828 vehicles in China in March, an 11.5% year-over-year decline. The company is facing stiff competition from domestic automakers like BYD.

In Canada, Tesla claimed 8,653 EVs sold over one January weekend, qualifying for tens of millions in subsidies. However, Canadian authorities have since frozen those payments pending investigation into the sales data.

Q1 Stock Collapse and Market Cap Wipeout

Tesla shares plummeted 36% in Q1—their worst performance since Q4 2022—wiping out approximately $460 billion in market capitalization. The decline marks the third-largest quarterly drop in Tesla’s 15-year public market history.

Looking Ahead

Despite current challenges, Musk remains optimistic. He recently told employees he believes the redesigned Model Y will again be the world’s best-selling car this year. Investors, however, will be watching closely for signs of a turnaround.