Amid Musk’s controversy, Tesla’s Q1 deliveries plunged 13% in 1Q25, with weak Cybertruck sales, and fierce competition with China’s BYD. Can the refreshed Model Y reverse the slump?
Tesla’s deliveries fell by 13% in Q1 2025, marking its worst performance in over two years. The company reported a delivery of 336,681 vehicles globally, a significant decline from the previous year. This drop comes amid ongoing backlash against CEO Elon Musk due to his controversial ties with the Trump administration.
The EV giant’s sales have been in plummeting for some time. Tesla saw a slight reduction in deliveries back in 2024 compared to 2023, marking its first annual drop in over a decade. Despite this, it retained its position as the world’s largest electric vehicle (EV) maker, with 1.79 million deliveries last year.
The drop in Q1 deliveries aligns with reports of weakening demand in various regions, despite global EV sales continuing to rise. For instance, Tesla’s sales in Germany plummeted by 76% in February compared to the same month in 2024.
According to a report by Inside EVs, several factors have contributed to the dip. The long-awaited affordable model has not yet been released, while the Cybertruck, Tesla’s only new vehicle in years, has not met expectations. Sales of the Cybertruck dropped from its peak in September 2024.
Although the Model 3 sedan was refreshed last year, it failed to spark a significant sales boost.
Tesla’s most popular vehicle, the Model Y, was also recently updated, which may have caused customers to delay purchases in anticipation of the new version. The company’s factories have been ramping up production of the refreshed model, but this has led to production delays in Q1.
Despite producing more cars than it delivered, Tesla is struggling to maintain momentum.
Meanwhile, the company faces fierce competition, particularly from Chinese automaker BYD, which has overtaken Tesla in sales of EVs. Musk’s political involvement, combined with mounting public protests and a drop in stock value, suggests that Tesla’s troubles may extend beyond the usual business challenges.
The coming quarters will reveal if these issues are temporary or indicative of deeper struggles for the company.
