In the first quarter of 2025, Tesla reported a significant decline in electric vehicle deliveries, marking the worst performance since 2022. Chinese and European automakers continue to pose serious competition for Tesla, leading to a decrease in demand for the American manufacturer’s products.
This is reported by Finway
According to Financial Times data, the company delivered only 336,681 electric vehicles in the first three months of the year, significantly down from 387,000 cars sold during the same period last year. Key factors contributing to this decline include negative consumer reactions in Europe to CEO Elon Musk’s actions, as well as fierce competition from Chinese automaker BYD, which has regained its position as the leader in electric vehicle production, selling 416,388 cars in the same quarter.
Reasons for the Sales Decline
Delays in updating the Model Y electric crossover have also impacted Tesla’s sales. The company announced that the delays are related to the modernization of the production line; however, the launch of the updated Model Y in Europe did not help improve sales figures. In regions such as France and Sweden, there has been a sharp decline in new registrations of the brand’s vehicles.
Impact on Company Stock
As a result of these issues, Tesla’s stock fell by 6.3% in early trading in New York. Journalists note that Musk’s interference in European politics has negatively affected the company’s image in the region. Tesla is facing challenges not only in Europe but also in the Chinese market, where an aging product lineup has reduced the company’s market share, while BYD models continue to gain popularity.