- Tesla reported first-quarter deliveries of almost 336,700 EVs, missing analyst expectations.
- The total was 13% lower than the same period last year and the worst quarter since Q1 in 2022.
- Tesla stock fell in morning trading and is down about a third this year.
Tesla reported first-quarter deliveries of almost 336,700 EVs on Wednesday, coming in well below analysts' expectations.
Wall Street had braced for a rough report, with analysts expecting 390,300 deliveries, per Bloomberg.
The total was 13% lower than the same period in 2024, with Tesla attributing the decline to changes in production lines ahead of the new Model Y. It was also the company's worst quarter since the first three months of 2022.
Tesla stock fell about 4% in morning trading and is down about a third this year.
One of Tesla's biggest cheerleaders, Wedbush analyst Dan Ives, called the numbers a "disaster on every metric. The Street and us knew a bad 1Q was coming but this was even worse than expected. The time has come for Musk ... it's a fork in the road moment."
Investor Ross Gerber said on X that deliveries of more expensive models such as the Cybertruck, S and X fell 25% to 12,881. He added: "The high-end EV business has totally eroded. The cybertruck is basically not selling. The brand is broken and may not be fixable."
The numbers offer the most comprehensive look yet at how Elon Musk's biggest business is faring amid signs of decreasing demand, protests against the brand, and a rise in used Tesla listings.
Worldwide declines
There have been worrying signs for Tesla's sales in recent weeks, asvarious countries separately released monthly figures showing declining deliveries.
Tesla sales in Australia and Germany both declined more than 70% in February. Several other European countries, including Norway, Denmark, Sweden, and France, also saw a dip in year-over-year sales in February.
Tesla sales also recently declined in China and the US, two key markets for the EV giant. The automaker sold around 79,000 electric vehicles in China in March, according to industry data released Wednesday, down 11.5% from last year.
Tesla's first-quarter sales figures arrive amid a growing boycott movement against Tesla, calling for owners to offload their Teslas and sell their stock. The movement is a response to Tesla CEO Elon Musk's political involvement with DOGE and its efforts to downsize the federal workforce, cut costs, and improve overall government efficiency.
As protests have ramped up, Tesla dealerships and owners of the brand have become targets of vandalism, with some incidents involving arson and gunfire aimed at Tesla buildings and vehicles. President Donald Trump and Attorney General Pam Bondi have vowed to treat Tesla attacks as domestic terror.
While some Tesla owners who have experienced backlash or harassment told BI the experiences had strengthened their support of the company and its leader, other owners have shared plans to sell their EVs out of fear of retaliation and embarrassment of being associated with the polarizing brand.
Tesla's used car market has also grown, with used Tesla listings increasing by 33% this year, per Cox Automotive data. Tesla isn't alone — listings for other EVs have also increased by 27% year-to-date.
While some attribute the rise to an aging car lineup, others believe Musk's influence on the brand may be a factor.
Tesla is pushing for a 'return to growth'
Tesla, like other EV makers, has been grappling with an industry-wide slowdown in growth.
The car giant reported its first year-over-year sales decline in 2024, falling just short of its delivery numbers the prior year.
Tesla is now trying to turn the tide, telling investors in January that it expected its vehicle business to "return to growth in 2025."
The delivery numbers offer a snapshot into how Tesla is progressing toward its goal of passing 2024's full-year deliveries of 1.79 million cars.
Gene Munster, a Tesla investor and analyst, said in an X post on Wednesday he now expected 1.63 million deliveries this year, down 9% year-on-year. He revised that figure down from a previous forecast of 1.7 million deliveries, or a 5% decline.
Tesla is fast approaching a self-imposed June deadline for two major developments.
The electric car giant has previously said it was on track to begin production for a long-awaited "more affordable" Tesla in the first half of 2025.
RBC Capital Markets analyst Tom Narayan previously told BI that consumers may be holding off for a cheaper model before buying a new Tesla.
The company is also planning to launch its robotaxi service in Texas in June, which would lay the groundwork for the eventual launch of its fully autonomous Cybercab. Production could begin next year.
Separately on Wednesday, EV startup Rivian said it had delivered 8,640 vehicles in the first quarter, down 36% from the previous year. Shares fell 5.5%
Speaking during the company's most recent earnings call, Rivian's CTO said vehicle deliveries would be lower in 2025 due to a "challenging demand environment," partly driven by the impact of LA's wildfires.
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