Tesla has reported that delivery of vehicles in the first three months of 2025 fell nearly 13 percent as demand for the automaker’s electric cars continued to weaken amid backlash to Elon Musk’s role advising President Donald Trump.
The result was well short of analysts’ expectations as Tesla revealed it shipped 336,681 vehicles in the first quarter, down from the 386,810 vehicles a year ago. Wedbush analyst Dan Ives said in an April 2 research note that expectations were about 360,000 vehicles during the period.
“The brand crisis issues are clearly having a negative impact on Tesla… there is no debate,” he said. “We are not going to look at these numbers with rose-colored glasses… they were a disaster on every metric.”
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Musk had promised to turn things around and return to growth after the company’s annual deliveries dipped in 2024. However, demand for cars from the $795 billion company continues to wane. Analysts say that is in part due to the electric vehicles’ antiquated design and perhaps more due to Musk’s affiliation with Donald Trump.
Ives said he believes Musk “needs to stop this political firestorm and balance being CEO of Tesla with DOGE.”
Indeed, the president’s “First Buddy” has caused a considerable stir due to his leadership at the helm of the Department of Government Efficiency (DOGE), which is responsible for slashing thousands of federal workers’ jobs.
Protests at Tesla dealerships and charging stations have erupted across the U.S. and Europe, with cars being spray-painted, banged up, carved into, and burned. The wave of vandalism comes as people race to trade in their vehicles. Those include Ashley St. Clair, Musk’s latest baby mama, who was seen selling her supposed $100,000 car.
It would seem that investors are still holding out hope, as they await ripple effects from the refreshed Model Y and incentives. These could counter weak demand and the growing competition from Chinese rivals like BYD and European rivals like Volkswagen and BMW.
Although Tesla began offering the refreshed Model Y with updated styling and enhanced interiors in China late February and in the U.S. and Europe last month, the company’s European sales have steadily dropped in March. In fact, France and Sweden saw a drop for a third straight month.
Meanwhile, the pricey Cybertruck pickup—Musk’s first actual contribution to the company—has been a money pit since its launch in 2023 due to issues with its quality and polarizing trapezoidal design.
Lastly, although Tesla isn’t facing the brunt of Trump’s new 25 percent tariffs on imported vehicles as it is manufactured in the U.S., Musk has said the cost implications of the auto tariffs are “significant.”
