Tesla , the trailblazing electric vehicle giant, reported a steep 13% drop in first-quarter deliveries, totaling 336,681 vehicles—a figure well below Wall Street’s expectations and down from 386,810 a year earlier. The disappointing numbers, released on April 3, 2025, come as CEO Elon Musk grapples with public criticism over his involvement with President Trump and the Department of Government Efficiency ( DOGE ), alongside intensifying competition and operational hurdles.
Analysts had forecasted deliveries exceeding 390,000, per Bloomberg data, making the shortfall a stark blow to investor confidence. Tesla’s stock took an initial hit, dropping as much as 6% in Wednesday trading, though it later rebounded over 5% following reports that Musk may soon distance himself from his Trump administration role. Despite the recovery, the stock remains down roughly 30% year-to-date.
Longtime Tesla analyst calls the report 'disaster on every metric'
According to a report in New York Post, Wedbush analyst Dan Ives , a longtime Tesla supporter, called the report a “disaster on every metric,” attributing the crisis to Musk’s political entanglements. “Musk needs to stop this political firestorm and balance being CEO of Tesla with DOGE,” Ives wrote in a client note. “The future is so bright, but this is a full-blown crisis Tesla is navigating now, and it’s primarily self-inflicted.” He warned that without a course correction, “darker times” could loom for the company, though he remains optimistic about its long-term potential.
The delivery slump coincides with a wave of vandalism and arson attacks on Tesla dealerships in the U.S. and abroad, which authorities, including Attorney General Pam Bondi, have labeled acts of domestic terrorism tied to Musk’s DOGE role. The controversial initiative has slashed federal agencies in a bid to curb government waste, fueling public outrage.
Elon Musk on Tesla's falling numbers
Tesla attributed part of the shortfall to production disruptions, noting that a Model Y line changeover across its four factories cost several weeks of output. Still, the company emphasized that the ramp-up of the updated Model Y is progressing well. Of the quarter’s deliveries, 323,800 were Model 3 sedans and Model Y SUVs, while other models, including the Cybertruck, accounted for just 12,881.
Meanwhile, rival Rivian also posted grim results, with deliveries falling 36% to 8,640 vehicles from 13,588 a year ago. Though in line with expectations, Rivian’s stock slid 6%, with the company citing softer demand and California wildfires as factors. Both Tesla and Rivian face looming supply chain pressures from President Trump’s proposed 25% tariffs on imported cars and parts, though their U.S.-based manufacturing offers a competitive edge over foreign rivals like Volkswagen.
In China, Tesla is losing ground to local players like BYD, while back home, Edmunds reported a record-high share of Tesla trade-ins for other vehicles in March. Amid these challenges, Musk sought to rally employees at a recent all-hands meeting, unveiling a product roadmap featuring long-awaited fully autonomous driving software. “Hang on to your stock,” he urged, pitching the technology as a game-changer for Tesla’s valuation.
As Musk navigates this turbulent chapter, Tesla’s path forward hinges on stabilizing its core business—and its polarizing leader finding a way to refocus on innovation over politics.
Analysts had forecasted deliveries exceeding 390,000, per Bloomberg data, making the shortfall a stark blow to investor confidence. Tesla’s stock took an initial hit, dropping as much as 6% in Wednesday trading, though it later rebounded over 5% following reports that Musk may soon distance himself from his Trump administration role. Despite the recovery, the stock remains down roughly 30% year-to-date.
Longtime Tesla analyst calls the report 'disaster on every metric'
According to a report in New York Post, Wedbush analyst Dan Ives , a longtime Tesla supporter, called the report a “disaster on every metric,” attributing the crisis to Musk’s political entanglements. “Musk needs to stop this political firestorm and balance being CEO of Tesla with DOGE,” Ives wrote in a client note. “The future is so bright, but this is a full-blown crisis Tesla is navigating now, and it’s primarily self-inflicted.” He warned that without a course correction, “darker times” could loom for the company, though he remains optimistic about its long-term potential.
The delivery slump coincides with a wave of vandalism and arson attacks on Tesla dealerships in the U.S. and abroad, which authorities, including Attorney General Pam Bondi, have labeled acts of domestic terrorism tied to Musk’s DOGE role. The controversial initiative has slashed federal agencies in a bid to curb government waste, fueling public outrage.
Elon Musk on Tesla's falling numbers
Tesla attributed part of the shortfall to production disruptions, noting that a Model Y line changeover across its four factories cost several weeks of output. Still, the company emphasized that the ramp-up of the updated Model Y is progressing well. Of the quarter’s deliveries, 323,800 were Model 3 sedans and Model Y SUVs, while other models, including the Cybertruck, accounted for just 12,881.
Meanwhile, rival Rivian also posted grim results, with deliveries falling 36% to 8,640 vehicles from 13,588 a year ago. Though in line with expectations, Rivian’s stock slid 6%, with the company citing softer demand and California wildfires as factors. Both Tesla and Rivian face looming supply chain pressures from President Trump’s proposed 25% tariffs on imported cars and parts, though their U.S.-based manufacturing offers a competitive edge over foreign rivals like Volkswagen.
In China, Tesla is losing ground to local players like BYD, while back home, Edmunds reported a record-high share of Tesla trade-ins for other vehicles in March. Amid these challenges, Musk sought to rally employees at a recent all-hands meeting, unveiling a product roadmap featuring long-awaited fully autonomous driving software. “Hang on to your stock,” he urged, pitching the technology as a game-changer for Tesla’s valuation.
As Musk navigates this turbulent chapter, Tesla’s path forward hinges on stabilizing its core business—and its polarizing leader finding a way to refocus on innovation over politics.
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