Tesla sales plummet by 13%, hitting a new low not seen since 2022
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To say Tesla sales are down is an understatement. The automaker’s deliveries fell by double-digit percentages following factory downtime, market competition, and, of course, a raging brand image crisis. It’s the worst sales quarter for Tesla in years.
First-quarter Tesla sales paint a grim picture for Elon Musk’s electric car marque
One day into his presidency, Donald Trump appointed Tesla CEO Elon Musk the head of the newly-minted Department of Government Efficiency (DOGE). Since then, Musk has taken a slash-and-burn approach to government cost-cutting. In the process, the South African Tesla chief hasn’t made any friends.
Now, the brand’s bottom line is dropping like a stone. Tesla’s Q1 vehicle deliveries are down 13% compared to the first quarter of last year. By the numbers, the divisive automaker delivered 386,810 EVs by the end of Q1 2024. This year, however, car buyers purchased just 336,681 Tesla-branded vehicles. It’s the worst sales period since 2022 and around 71,000 fewer than expectations. Things aren’t looking great for Musk’s marque in early 2025.
So, why the lackluster sales quarter for the once-popular Tesla? For starters, the brand isn’t the only name in electric vehicles anymore. Legacy automakers produce competition for Tesla’s best-selling nameplates, the Model Y and Model 3. Then there’s Rivian and Lucid, two American EV marques with high-performing alternatives to the Cybertruck, Model S, and Model X. Tesla isn’t the sole sheriff in town.
Also, idle production as the brand updates the Model Y has softened the brand’s sales of its top-performing seller. However, one of the greatest drivers of Tesla’s catastrophic first quarter was the negative public image surrounding the brand. CEO Elon Musk’s public antics and far-reaching government actions have instigated protests, vandalism, and even violence.
Of course, Tesla isn’t out of options. Later this year, more affordable versions of the updated Model Y will be available with a new look and a longer single-charge range. Still, after months of collecting orders for the top-of-the-line “Launch Edition,” the brand managed to create enough interest for two weeks of deliveries. Not exactly record-breaking.
