Tesla Sales Plunge Shows How Far The EV Leader Has Fallen

Tesla just released its first quarter sales results for 2025, and the numbers give us our first official indication of how the personal conduct of the company’s CEO, Elon Musk, has impacted demand. The electric vehicle brand reported 336,681 deliveries in Q1 2025, a substantial 13% drop from Q1 2024 when it moved 386,810 units. These delivery numbers fell well below investor targets of 360,000 to 370,000 units, and represent the company’s worst quarter since Q2 2022. The Cybertruck has been especially poor compared to what was expected when it was announced.

EV sales are slowing across the industry, but the market is not in decline. Sales are still increasing, just slower than in previous years. So you can’t blame Tesla’s misfortunes on the EV market at large. In fact, other brands are taking advantage by offering incentives for current Tesla owners, and rapidly shrinking Tesla’s market share. So what exactly is going on with one of the world’s most popular EV brands?

Old Cars, Older Image

Despite recent refreshes to the Tesla Model 3 and Tesla Model Y, these cars have platforms that date back to 2017 – practically an eternity in car years. Tesla does not give an exact sales breakdown by model but specified that 345,454 sales came from the Model 3 and Model Y. That means the Model S, Model X, and Cybertruck only accounted for 12,881 deliveries combined. Musk once floated the idea that the Cybertruck would sell 250,000 to 500,000 units per year, outselling the Chevrolet Silverado. In reality, it hasn’t even outsold the F-150 Lightning. Tesla has also faced numerous issues with the Cybertruck, including but not limited to peeling body panels.

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If it’s not the cars themselves that are responsible for the sales slump, it could be Musk’s personal antics that are deterring customers. The outspoken CEO has become a staple of right-wing politics, running the controversial Department of Government Efficiency (DOGE), holding a self-promotional event at the White House, contributing $25 million to a Wisconsin Supreme Court race, and spending more than $277 million on President Trump’s 2024 campaign.

Many current Tesla owners have started putting bumper stickers on their cars in protest of Musk, and some have even swapped out their Tesla badges for other brand logos.

Not Just A USA Problem

Tesla’s sales woes are not limited to the United States, where Musk’s politics are most prominent. The company’s sales dropped by a whopping 43% in Europe compared to 2024, a market which saw a 31% increase in EV sales during the same period. Sales in China reportedly dropped as well. It’s unclear how the Trump Administration’s tariffs, which came into effect on April 2, will impact Tesla.

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Tesla builds all of its cars for the US locally but could be the target of reciprocal tariffs from Canada and other countries. If these Q1 sales numbers are indicative of what’s to come, Tesla could be in for a rough time.