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Highlights

  • Missed Expectations: Tesla delivered 336,681 vehicles in Q1, below analysts’ estimates of 396,960.

  • Global Decline: Sales dropped 49% in China (Feb), 76.3% in Germany (Feb), and 2% in the U.S. (Jan-Feb).

  • Stock Volatility: Despite the report, Tesla shares rose 5% following speculation that Elon Musk may step back from his White House role.

Tesla (NASDAQ:TSLA) reported a 13% decline in global vehicle deliveries in the first quarter of 2025, signaling growing challenges for the EV giant. The company delivered 336,681 vehicles, significantly missing analysts’ expectations of 396,960. The drop comes amid increased competition, consumer backlash, and CEO Elon Musk’s political controversies.

Market Weakness Across Key Regions

Tesla’s sales slump was particularly noticeable in some of its biggest markets:

  • China: February sales plunged 49% year-over-year but recovered slightly in March with 78,828 units sold—still an 11% decline from the previous year.

  • Germany: February registrations collapsed 76.3%, per the German Motor Transport Authority.

  • U.S.: Tesla’s sales in the first two months of 2025 were down 2%, according to Wards Intelligence.

Despite the downturn, Tesla regained third place in China’s auto market in March, after dropping out of the top five in February.

Consumer and Political Backlash Hurting the Brand

Tesla's declining sales coincide with a growing consumer pushback over Musk’s public political stance. His vocal support for far-right parties in Europe and involvement in the Trump administration has led to political protests and some long-time Tesla owners boycotting the brand. Recent surveys indicate a decline in Tesla’s favorability, particularly among Democrats.

Additionally, competition from legacy automakers is intensifying. General Motors (GM) and Hyundai both saw sales growth in Q1, while Ford and Stellantis (Jeep's parent company) posted declines. Tesla’s market share has been further eroded by new EV models from Kia, GM, and others.

Stock Volatility Amid Musk's White House Speculation

Despite the weak Q1 report, Tesla shares climbed more than 5% on Wednesday. The rally followed a Politico report suggesting that Musk may step back from his advisory role in the White House and return to focusing on Tesla and his other companies.

Tesla’s stock has been highly volatile in recent months. After surging post-election, its valuation peaked at $1.5 trillion in December before declining back to pre-election levels in early 2025.