Tesla's sales fell in the first quarter of 2025, marking a 13% drop and indicating potential challenges ahead for the electric vehicle giant, according to news agency AP.
The decline, which saw global deliveries fall to 336,681 units in the January-March period, down from 387,000 during the same period last year, is attributed to a combination of factors, including an aging vehicle line-up, increased competition, and backlash from CEO Elon Musk's embrace of right-wing politics.
Despite offering deep discounts, zero financing, and other incentives, Tesla still fell short of analysts’ expectations, in which FactSet expected much higher deliveries of 408,000.
Sales down globally Tesla's electric car sales in Europe have seen significant drops, with March figures showing a 36.8 percent decline in France, according to data from the Automotive Platform (PFA). The overall electric vehicle market in France also experienced a slight dip during the same period, news agency AFP reported.
In Sweden, Tesla sales plunged by 63.9 percent in March and 55.2 percent for the first quarter of the year, according to Mobility Sweden.
Notably, the Tesla Model Y, which was the top-selling car in Sweden during the first quarter of 2024, has now fallen behind two Volvos, the luxury Volkswagen ID.7, and a Subaru in sales. Similarly, Tesla's sales in Denmark dropped by 56 percent in the first quarter, according to Mobility Denmark. Figures for March sales in Germany, Britain, and Italy will be released in the coming days.
Tesla's stock performance Tesla's stock has plummeted by about 50% since hitting a record high in mid-December, as initial expectations of lighter regulation and significant profits under a Donald Trump presidency have been replaced by growing concerns over protests against CEO Elon Musk and other issues potentially hurting the company.
Analysts remain uncertain about the exact impact of these protests on sales, as the overall electric vehicle (EV) market has also been sluggish. Tesla, in particular, is facing challenges as potential buyers hold off on purchasing its best-selling Model Y, anticipating an updated version later this year.
Moreover, Tesla has lost market share to increasing competition, with rivals like BYD gaining ground. The Chinese EV leader recently unveiled technology enabling its cars to charge in just a few minutes, further intensifying the pressure on Tesla.
Tesla’s shares dropped more than 4% before the market opened on Wednesday.
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