Tesla reports largest sales drop in history with 13% plunge in Q1 2025 deliveries

Tesla’s sales took a significant hit in the first quarter of 2025, plunging 13% and marking the largest drop in deliveries in the company’s history, according to CNN.

The electric vehicle (EV) maker reported delivering 336,681 vehicles, a sharp decline from 386,810 in the same period last year — a drop of 50,000 units. This marks Tesla’s worst sales performance in nearly three years.

The decline in sales is attributed to a combination of factors, including backlash against CEO Elon Musk, growing competition from other automakers, and political controversies linked to Musk's support of far-right political parties.

Protests have taken place outside Tesla showrooms, and incidents of vandalism at Tesla facilities, including charging stations, may have discouraged potential buyers.

While Tesla did not address the protests in its sales statement, it cited a production changeover of the Model Y that temporarily halted production at all four of its factories for several weeks during the quarter. Despite these setbacks, the company thanked its customers, employees, and supporters for their efforts in achieving the reported results.

The sales drop was steeper than expected, with analysts forecasting a quarterly sales figure as low as 350,000. In Europe, Tesla’s sales were hit hardest, dropping by 49% in the first two months of the quarter, despite an overall 28% growth in EV sales on the continent. Opposition to Musk’s political views in Europe may have contributed to the decline.

Tesla also faces fierce competition, particularly from Chinese automaker BYD, which overtook Tesla in global EV sales during the quarter. BYD reported sales of over 416,000 electric passenger vehicles, marking a 39% increase from last year.

The company’s EVs are generally less expensive than Tesla’s and have gained significant market share, especially in China. Tesla’s lead in full-year global EV sales is now under threat as BYD continues to grow its market share.

Despite these challenges, Tesla remains a key player in the EV market, but the competition is intensifying, especially as Chinese automakers like BYD gain ground. Tesla’s stock has also faced significant losses, with shares dropping 44% from their all-time high reached just before Christmas, and falling 5% in pre-market trading following the sales report.