Tesla was recorded 336,681 deliveriesIts worst quarterly performance in more than two years, as the brand has been suffering from a reaction to CEO Elon Musk’s political maneuver.
Sales dip comes as Musk continues to drive the dog, the “advisory body” that has fired thousands of federal employees and has tried to eliminate entire organizations and programs. His involvement in the government has proved not only controversial but also unpopularleading many to wonder what the result could have on Tesla’s sales.
Even one of Tesla’s top supporters on Wall Street recently brought Musk to spend less time in politics and more time running his business.
Sales decreased from 495,570 in the quarter 2024 and 386,810 in the first quarter of last year. Tesla has also released 362,615 production numbers, which is under previous periods partly due to the automotive industry that converts its production lines for the new Y refresh model, which was released worldwide in March.
“While the transition of the Y model lines and four of our factories led to the loss of several weeks of production in the third quarter, the new Y model ramp continues to go well,” Tesla said in a statement.
Anlylers were expected to report 408,000 EVs for the period January to March, per facetset. Although in recent weeks, several analysts have downgraded their expectations below 400,000, as “Tesla Takedown” protests broke out across the country and international sales declined.
Tesla does not collapse delivery numbers by region, but sales in Europe and China have declined in the first quarter.
During the first two months of the year, European sales collapsed by 49% annually, even when UN sales have increased in total, according to the European Union of Car Manufacturers.
In Germany – it hosts one of Tesla’s Gigafactories and usually one of Tesla’s largest EU markets – these numbers decrease even more. In February, Tesla sales in Germany decreased by 76% to just 1,429 points compared to 6,038 in 2024.
This trend was followed throughout Europe in March, through early data released by some countries. For example, the French PFA trade union reported 3,159 Tesla deliveries last month, below 37% from March 2024 and less than 41% for the quarter. The story is similar in Sweden, where Tesla sales decreased by 64% in March.
Overall in Europe, new EV sales increased by 28.4%, recording 15.2% of the total EU market share, even when total new cars have decreased.
Meanwhile, in China, a basic market for Tesla, sales of Shanghai cars fell in March amid BYD competition, which surpassed Tesla for revenue In 2024, other local players like Geely. Tesla sold 78,828 EVs in China in March, below 11.5% annually, according to China’s passenger cars. This is one of the 30,688 cars purchased in February.
Tesla had a rough start for the year. Its stock hit its lowest efficiency by 2022 in the midst of mounting pressures, increased the reaction against Musk and a series of aging. Despite Cybertruck’s popularity, it has not boosted Tesla’s sales numbers enough to turn things.
Tesla probably hopes that the refreshed model y and Other possible upgrades This year’s arrival will boost sales numbers. Earlier this week, Tesla started offering Funding 0% in the refurbished Modelo Y in China. The company has also teased mysterious new lower -cost models that has not yet revealed.
‘Darkest times forward’
Tesla Bull Dan Ives, Wedbush analyst, posted a note After the numbers came out, inviting Musk to “get his act together” in relation to Doge and Tesla running “or unfortunately the darkest moments are ahead for Tesla”.
“With current TSLA heads across the industry, including protests at Tesla delegations, violence observed in Tsla drivers across the country/Europe and the most vigorously associated with calves.
However, Wedbush has maintained its highest rating for Tesla due to the continuing faith in the car industry to enter the autonomous driving market, despite the fact that Tesla has not yet achieved complete self-leadership. Tesla aims to launch a robot service at Austin this summer, which will be a basic time to decide whether Tesla will eventually meet the many CEO promises.
This article has been informed to include a reaction from Wall Street.
