Tesla's Q1 Deliveries Plunge to the Lowest in Two and a Half Years

Tesla's report on Wednesday showed that its global electric vehicle deliveries in the first quarter were 336,681 units, a decrease of 50,000 units compared to the first quarter of last year. This is Tesla's lowest quarterly level since the second quarter of 2022.

 

Tesla provided an explanation:The production lines of the Model Y at Tesla's four factories needed to be converted for the new version, resulting in the loss of several weeks of production time in the first quarter.

 

Let's look at Tesla's production volume.

 

The production volume was 362,615 units, which is indeed much lower than that of the four quarters from 2024 (the production volume in each quarter was at least over 410,000 units). The conversion of the production lines does have an impact.

 

However, another possibility should also be considered: the impact of insufficient order volume on its production volume.

 

Tesla is facing the challenges of fierce competition in the electric vehicle market and damaged reputation.

 

In the first quarter, due to Musk's political remarks and his work as a member of US President Trump's second-term administration, Tesla's vehicles and facilities encountered multiple protests, boycotts, and even some acts of vandalism.

 

After spending $290 million to help Trump return to the White House, Musk is currently leading the Department of Government Efficiency (DOGE), which is committed to cutting costs, repealing regulations, and laying off tens of thousands of federal jobs.

 

Since Musk took office in the Department of Government Efficiency, his approach to laying off employees has triggered many public protests.

 

Now, many American citizens are boycotting Tesla. The protest demonstrations against Tesla stores and Tesla cars are increasing in number, and both the scale and impact are escalating.

 

In addition, Musk has also dabbled in European politics and publicly supported a German anti-immigrant political party in February, causing Tesla's business on the European continent to fall into trouble.

 

According to public data, in 15 European countries, Tesla's market share dropped from 17.9% a year ago to 9.3%.

 

 

Musk himself previously admitted frankly:"Serving in the US government is not good for me...My company is suffering losses because of my position in the Department of Government Efficiency."

 

The Chinese market has given Tesla the greatest confidence.

 

Although Tesla faces intense competition in China's new energy vehicle market, with a large number of new force car companies benchmarking against Tesla.

 

However, the Tesla Model Y is still one of the best-selling models in the Chinese market. In the first quarter of 2025, Tesla's sales volume in the Chinese market was 137,200 units, making it the first quarter with the highest sales volume since 2022.

 

 

Just entering April, Tesla began to roll out the latest preferential activities.

 

Tesla China's latest limited-time car purchase policy is as follows:Before April 30, all models of the Model Y refreshed version enjoy a limited-time 3-year 0% interest and 5-year ultra-low interest car purchase financial policy.

 

The Model 3 Rear-Wheel Drive version/Long Range All-Wheel Drive version can enjoy a limited-time 5-year 0% interest policy.This interest-free policy and possible future limited-time discounts will drive the further increase of Tesla's sales volume in China.

 

In the past few days, Musk announced his resignation from the Department of Government Efficiency, and the US government has confirmed this matter. Regarding Tesla's stock price, I still hold the same view.

 

So I'm still optimistic.$TSLA