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Tesla Stock Drops as Sales Figures Fall Short of Expectations
Tesla shares experienced a significant drop of approximately 5% in pre-market trading on Wednesday following the announcement of a 13% decrease in sales. The electric vehicle manufacturer, led by Elon Musk, reported deliveries of 336,681 vehicles worldwide between January and March 2025. This downturn in deliveries has negatively impacted Tesla’s market performance.
Lower Than Anticipated Deliveries
The reported figures were notably below analyst predictions. FactSet had projected around 408,000 deliveries for the same period. Adding to the challenges for the electric car maker, the total deliveries also represented a decline from the 387,000 vehicles distributed during the corresponding period last year.
Potential Factors Contributing to Sales Decline
Industry experts are currently evaluating the extent to which the recent dip in sales can be attributed to protests against Elon Musk or other external factors.
- Stalled Electric Vehicle Market: Broader trends indicate a general slowdown in electric car sales in recent months, with weakened private demand emerging as a concern across key global markets.
- Increased Competition: This setback represents another challenge for Tesla, placing the American automotive brand at risk of losing its leading position to growing competition from Chinese manufacturers.
- European Sales Decline: Prior data from the European Automobile Manufacturers’ Association indicated a substantial 49% decrease in Tesla’s sales within Europe alone during the first two months of the quarter. This occurred despite an overall 28% growth in electric vehicle sales across the European continent.
Analyst Assessment of Tesla’s Performance
“Brand Crisis” Impacting Demand
Dan Ives, a spokesperson for the analyst firm Wedbush, emphasized that Tesla’s first-quarter results were considerably worse than expected. He asserted that there is now an undeniable “brand crisis” facing the EV giant, which is negatively affecting consumer demand.
“The brand crisis issues are demonstrably having an adverse effect on Tesla,” Ives stated. “There is no room for misinterpretation of these figures; they were unequivocally a disaster across all measured aspects.”