Tesla Inc. ( TSLA ) shares are trading lower Thursday after the company reported weaker-than-expected performance for the first quarter of 2025.

What To Know: The company produced 362,615 vehicles, down from 433,371 a year ago, and delivered 336,681 vehicles, a 12% decline. The drop was partly due to the Model Y production line changeover, which caused several weeks of lost production. Tesla is still optimistic about the ongoing ramp-up of the new Model Y.

Tesla’s troubles extend beyond production. U.S. vehicle registrations fell 11% in January, while competitors such as Ford and Volkswagen saw strong growth. Tesla also struggled in Europe, where registrations dropped by half due to political backlash and weakened brand sentiment.

The stock has fallen 32% this year, with many analysts citing Musk’s leadership and the broader market conditions as major factors. Although Musk remains confident in Tesla’s future, investors are wary of the challenges it faces, including operational setbacks and declining demand in key markets.

Wedbush analyst Daniel Ives had predicted 355,000-360,000 deliveries for first quarter, but noted that 70% of Tesla’s issues stem from timing and operational problems, with the rest related to brand perception under Musk. Ives estimates first-quarter revenue at $24.05 billion and earnings per share at 56 cents, calling this period a low point for the company.

Despite the current decline, Ives believes Tesla could recover in the second half of the year, driven by new models and technological advances. But for now, investor confidence remains shaky as Tesla faces increased competition and market challenges.

TSLA Price Action: Tesla shares closed Thursday down 5.47% at $267.28, according to Benzinga Pro.

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