Tesla recorded 336,681 delivery. This marked the worst quarterly performance in over two years as the brand rebels against CEO Elon Musk’s political manipulation.
A drop in sales occurs as Musk continues to lead Doge, a “advisory group” that has fired thousands of federal employees and tried to eliminate agents and the entire program. His involvement in the government has not only been controversial, but also proven unpopular, leading many to wonder how it will affect Tesla sales.
Even one of Wall Street’s top Tesla supporters recently invited Musk to spend less time in politics and more time running his business.
Sales fell from 495,570 in the fourth quarter of 2024 and 386,810 in the first quarter last year. Tesla also released a production number of 362,615, which fell from the previous period, as it switched its production line for its new Model Y Refresh, which was sold worldwide in March, to an automaker.
“While the switching of the Model Y line at four factories lost several weeks of production in the first quarter, the new Model Y ramp continues to go smoothly,” Tesla said in a statement.
Analysts were hoping that on average Tesla would report deliveries of 408,000 EVs from January to March, and reported on each fact set. In recent weeks, several analysts have downgraded expectations to less than 400,000 as “Tesla Takedown” protests broke out nationwide and international sales fell.
Tesla does not break down the number of deliveries by region, but sales in Europe and China fell in the first quarter.
In the first two months of the year, European sales fell 49% year-on-year, even if overall sales of EVS increased, according to the European Association of Automakers.
Germany is one of Tesla’s Gigafactories and usually has one of Tesla’s largest EU markets. These numbers are declining even further. In February, Tesla’s sales in Germany fell 76% to just 1,429 units, compared to 6,038 in 2024. The decline in sales follows the approval of Germany’s far-right AFD party’s masks in the national election last month.
That trend continues throughout Europe in March, with each initial data released by some countries. For example, the French Trade Association PFA reported 3,159 Tesla delivery last month, a 37% decline from March 2024 and a quarterly 41% decline. The storyline is similar in Sweden, with Tesla’s sales down 64% in March.
All over Europe, new EV sales rose 28.4%, capturing 15.2% of the total market share in the EU.
Meanwhile, in China, Tesla’s key market, sales of Shanghai-made cars fell in March amid competition with BYD, which outperformed other local players like Tesla and Geely on 2024 revenue. According to data from the China Passenger Automobile Association, Tesla fell 11.5% year-on-year to 78,828 EVs in March. This comes from 30,688 cars purchased in February.
Tesla has gotten off to a rough start this year. Its inventory has reached its lowest performance since 2022, amongst an increased pressure, increased rebound against musk, and aging lineup. Despite CyberTruck’s popularity, Tesla’s sales were not increased.
Tesla may be hoping that the refreshed Model Y and other potential upgrades this year will increase sales. Earlier this week, Tesla began offering 0% funding in China’s updated Model Y range. The company also teased a mysterious new low-cost model that has yet to be revealed.
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