Tesla has released its first-quarter 2025 electric vehicle production and delivery report. In the first three months of this year, the company delivered 336,681 electric vehicles, which is well below analysts’ expectations.
Image Source: Tesla
The consensus forecast among Wall Street analysts surveyed by Bloomberg was for 390,000 EVs, while FactSet analysts expected 408,000 vehicles. By comparison, the company delivered 386,810 EVs in the first quarter of 2024.
Electric vehicle production in the quarter was 362,615 units. Tesla attributed the decline in production and deliveries to the transition to production of the updated Model Y. As Electrek notes, this undoubtedly affected the numbers, but the extent of the impact remains unclear.
In turn, TechCrunch links the drop in deliveries, among other things, to the political activities of Tesla CEO Elon Musk. The Department of Government Efficiency (DOGE), which he heads, has fired thousands of federal employees and is trying to eliminate entire agencies and programs. Musk’s involvement in the government has caused a mixed reaction and has become unpopular, which, according to the publication, has made many wonder about the possible impact of this factor on Tesla sales.
The company does not release regional delivery data, but its sales in Europe and China have fallen. Tesla’s European sales fell 49% year-on-year in the first two months of the year, despite overall growth in electric vehicle sales, according to the European Automobile Manufacturers Association. In Germany, one of Tesla’s largest EU markets, February sales fell 76% to just 1,429 units, down from 6,038 a year earlier. The drop came after Musk publicly endorsed a party in national elections the previous month. Tesla’s sales in France fell 37% year-on-year in March, while in Sweden they fell 64%.
Overall, the European electric vehicle market grew by 28.4%, reaching 15.2% of the EU market share, despite a decline in new car registrations.
In China, Tesla’s key market, sales of electric vehicles made at its Shanghai plant fell 11.5% year-on-year in March, according to the China Passenger Car Association. The company faces stiff competition there from BYD, which will surpass it in revenue in 2024, and other Chinese automakers including Geely.
The American company is taking active steps to improve the situation. In particular, a few days ago it began offering an interest-free loan for three years for buyers of the updated Model Y.
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