Tesla loses ground: sales fall 13% in the first quarter of 2025
By ForGeeks Rising competition, political scandals and shifting customer preferences – what’s happening to the electric car leader?”
The first quarter of 2025 was a challenging one for Tesla: the company produced 362,615 electric vehicles, but deliveries fell to 336,681 units – down 13% from the same period in 2024 (386,810 units). The main demand continues to be for the Model 3 and Model Y models, which accounted for 323,800 deliveries. The premium Model S and Model X were less in demand, with just 12,881 units sold.
Why is Tesla losing customers?”
Despite Ilon Musk’s promises to return growth after last year’s downturn, the company is facing unprecedented challenges. In the US and Europe, sales are declining due to growing discontent with the Tesla chief’s political activism. His cooperation with President Donald Trump, including advice on layoffs and cuts to social programs, has triggered a wave of criticism. The result has been protests outside showrooms and incidents of vandalism of cars with Musk’s “digital quotes” lit up on displays.
The European market, a key market for Tesla, is also showing a downturn. France and Sweden recorded sales declines in March for the second month in a row. The data also points to another worrying trend: Tesla owners are increasingly swapping their electric cars for competitors’ models.
Model Y – trying to regain interest
To buck the trend, Tesla unveiled a revamped Model Y with a restyled design and improved interior in early 2025. The novelty was released in China in January, and in the US and Europe later that month. However, judging by the quarterly statistics, the release has not yet had the expected effect.
Analysts’ predictions: from cautious optimism to pessimism
At the beginning of the year, experts predicted a 7% increase in Tesla’s annual deliveries (to 1.92 million units). But against the backdrop of the current data, the scenarios are revised: now we are talking about stagnation or even decline in sales.
Tesla is trying to balance innovation with maintaining audience loyalty. But scandals, pricing and market pressures are challenging the company’s ambitious plans. If the trend continues, the corporation will have to rethink not only its marketing strategy, but also its approach to image management.
