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Tesla's first-quarter deliveries slump on Musk backlash, weak demand
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Tesla's first-quarter deliveries slump on Musk backlash, weak demand
Apr 2, 2025 6:24 AM

April 2 (Reuters) - Tesla's first-quarter

deliveries fell 13%, hurt by backlash against CEO Elon Musk's

political stance, rising competition and its aging line up of

electric vehicles, sending its shares down more than 4% in

premarket trading.

It delivered 336,681 vehicles in the first quarter, down

from 386,810 units a year ago. Tesla was expected to report

about 372,410 vehicles, according to an average estimate of 15

analysts from Visible Alpha.

The electric automaker's stumbling sales indicate that the

one-time leading brand is reeling from the fallout of the

company not refreshing its vehicle lineup in years and Musk

embracing hard-right politics.

China's BYD is set to unseat Tesla as the top global EV

seller for the first time this year with a 15.7% market share,

ahead of Tesla's 15.3%, according to Counterpoint Research.

Musk has pledged a return to growth after Tesla's annual

deliveries dipped last year, but his advisory role to U.S.

President Donald Trump, through which he has been instrumental

in firing thousands of federal workers and cutting humanitarian

aid, has sparked discontent among some customers.

Protests at Tesla stores in the U.S. and Europe have spiked,

and Tesla cars are being vandalized. Some data indicates a rise

in Tesla owners trading in their vehicles.

Meanwhile, investors are waiting to see if refreshed models

like the Model Y and incentives have helped counter weak demand

and tough race from Chinese rivals including BYD

and European competitors such as Volkswagen

and BMW.

Tesla's sales in key European markets fell again in March,

with sales in France and Sweden dropping for a third straight

month.

Tesla began offering the refreshed Model Y with updated

styling and enhanced interiors in China late February and in the

U.S. and Europe last month.

Data from auto industry associations and analyst estimates

point to notable declines in Tesla sales during the first two

months of the year in the U.S., Europe, and China.

Tesla has indicated plans to launch a lower-priced model

based on its existing platform this year, but is yet to release

specific details about the vehicle.

Its pricey Cybertruck pickup, launched in late 2023, has

seen limited demand due to its polarizing trapezoidal design and

quality concerns. Tesla recently recalled nearly all

Cybertrucks to address a potential exterior panel issue.

While Tesla may see less pain from the new 25% tariffs on

imported vehicles due to its U.S.-based manufacturing, Musk has

said cost implications are "significant". Tesla has also warned

about potential retaliatory tariffs in response to the levies.

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