The total was 13% lower than in the same period in 2024, with Tesla attributing the decline to changes in production lines ahead of the new Model Y's release. It was also the company's worst quarter since the first three months of 2022.
Tesla stock fell about 4% before reversing course to jump more than 5% after Politico reported that President Donald Trump had told his inner circle Tesla CEO Elon Musk would soon step back from his White House role.
One of Tesla's biggest cheerleaders, the Wedbush analyst Dan Ives, called the numbers a "disaster on every metric," adding: "The Street and us knew a bad 1Q was coming but this was even worse than expected. The time has come for Musk ... it's a fork in the road moment."
Ross Gerber, an investment advisor, said on X that deliveries of more expensive models such as the Cybertruck, Model S, and Model X fell 25% to 12,881. He added: "The high-end EV business has totally eroded. The cybertruck is basically not selling. The brand is broken and may not be fixable."
The numbers offer the most comprehensive look yet at how Musk's biggest business is faring amid signs of decreasing demand, protests against the brand, and a rise in used-Tesla listings.
Worldwide declines
In recent weeks, there have been worrying signs for Tesla's sales as various countries have separately released monthly figures showing declining deliveries.
Tesla sales in both Australia and Germany had declined more than 70% year over year in February. Several other European countries, including Norway, Denmark, Sweden, and France, also saw a dip in year-over-year sales in February.
Its sales also recently declined in China and the US, two key markets for the EV giant. In March, the automaker sold about 79,000 electric vehicles in China, according to industry data released Wednesday, down 11.5% from last year.
The company's first-quarter sales figures arrived amid a growing boycott against Tesla. The movement calls for owners to offload their Teslas and sell their stock. It's a response to Tesla CEO Elon Musk's political involvement with the White House DOGE office and its efforts to downsize the federal workforce, cut costs, and improve overall government efficiency.
As protests have ramped up, Tesla dealerships and owners of the brand have become targets of vandalism, with some incidents involving arson and gunfire aimed at Tesla buildings and vehicles. President Donald Trump and Attorney General Pam Bondi have vowed to treat Tesla attacks as domestic terrorism.
While some Tesla owners who have faced backlash or harassment told Business Insider the experiences had strengthened their support of the company and its leader, others have shared plans to sell their EVs out of fear of retaliation and embarrassment of being associated with the polarizing brand.
Tesla's used-car market has also grown, with listings increasing by 33% this year, per Cox Automotive data. Tesla isn't alone — listings for other EVs have increased by 27% year to date, Cox said in an industry forecast.
While some attribute the rise to an aging car lineup, others say Musk's influence on the brand may be a factor.
Tesla is pushing for a 'return to growth'
Tesla, like other EV makers, has been grappling with an industrywide slowdown in growth.
The car giant reported its first year-over-year sales decline in 2024, falling just short of its delivery numbers from the prior year.
Tesla is now trying to turn the tide, telling investors in January that it expected its vehicle business to "return to growth in 2025."
Gene Munster, a Tesla investor and analyst, said Wednesday in an X post he now expected 1.63 million deliveries this year, which would be down 9% year on year. He revised that figure down from a previous forecast of 1.7 million deliveries, or a 5% decline.
Tesla is fast approaching a self-imposed June deadline for two major developments.
The electric car giant previously said it was on track to begin production on a long-awaited "more affordable" Tesla in the first half of 2025.
Tom Narayan, an RBC Capital Markets analyst, previously told BI that consumers may be holding out for a cheaper model before buying a new Tesla.
The company is also planning to launch its robotaxi service in Texas in June, which would lay the groundwork for the eventual launch of its fully autonomous Cybercab. Production could begin next year.
Separately on Wednesday, the EV startup Rivian said it had delivered 8,640 vehicles in the first quarter, down 36% from the previous year.
Speaking during the company's most recent earnings call, Rivian's chief technology officer said vehicle deliveries would be lower in 2025 because of a "challenging demand environment," partly driven by the impact of Los Angeles' wildfires.
