Economics

Summary

Tesla reported a 13% drop in global vehicle sales for Q1 2025, its worst quarter since 2022, missing analysts’ expectations by over 70,000 units.

Analysts cite an ageing product lineup, factory downtimes, rising competition from rivals like BYD, and growing public backlash against Elon Musk’s political actions and controversial behavior.

Despite discounts and incentives, demand lagged, especially for the Model Y, which awaits an updated version.

Tesla’s stock has fallen sharply since December, and analysts warn that unless Musk refocuses on the company, volatility and underperformance may continue.