Tesla reported a significant drop in vehicle deliveries for the first quarter of 2025, highlighting challenges from increased market competition and public backlash related to CEO Elon Musk’s political activities.
The electric vehicle manufacturer delivered 336,681 vehicles in Q1, marking a 13% decrease compared to the same period last year. Production also declined, with 362,615 vehicles produced, down from 433,371 in Q1 2024. This shortfall is partly attributed to production adjustments at the Fremont, California, factory for the updated Model 3 and operational disruptions at the Berlin plant due to external factors.
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Tesla’s performance varied across different regions. In China, the company sold 78,828 China-made electric vehicles in March, an 11.5% year-over-year decrease, while Chinese competitor BYD saw a 23.1% rise in sales with 371,419 units sold.
In Europe, Tesla’s sales faced significant declines, with notable decreases in France (36.83%), Sweden (63.9%), and the Netherlands (61%) in March. These downturns coincide with protests and acts of vandalism targeting Tesla showrooms and vehicles, reflecting growing consumer dissatisfaction linked to Musk’s political engagements.
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The company’s stock has experienced volatility, reflecting investor concerns over declining sales and the impact of Musk’s political involvement. Tesla’s market capitalization has dropped 45% since December 2024, erasing most of the gains made after Musk’s political endorsements.
Tesla’s recent performance underscores the challenges it faces in maintaining its market position amid intensifying competition and public relations issues.