Tesla Q1 2025 sales decline amid Model Y refresh expansion

Tesla has published its Q1 2025 deliveries and production results, revealing a downtime in sales amid a production transition for Model Y, growing competition and some negative impact of CEO Elon Musk’s participation in politics.

The company has produced 362,000 vehicles and delivered 336,000 vehicles in the first quarter, compared to 433,000 units production and 386,000 deliveries in the same quarter last year. That said, the production was dropped by 81,000 units around 18.3% and 50,000 units (around 13%) in Q1 2025.

This change comes amid the growing competition in the Chinese EV companies, which has been a stronghold of the American automaker, but the recent rise of companies such as Xiaomi and others also took some shares away from the company.

Source – Tesla

Tesla also started this year by introducing a refreshed Model Y and has been preparing for mass production through January. That said, the new Model Y is still far away from starting a full fledge sales for affordable model in major markets, including the US.

Related to this, Tesla confirmed that the changeover of Model Y lines across Fremont Factory, Giga Texas, Giga Berlin, and Giga Shanghai has led to the loss of several weeks of production in the first quarter.

“The ramp of the new Model Y continues to go well,” wrote Tesla in a statement.

During this quarter, 10.4 GWh of energy storage products deployed compared to the 4,053 MWh in Q1 of 2024. Tesla will post the financial results for the recent quarter of on Tuesday, April 22, and host a live conference featuring CEO, Elon Musk at 4:30 p.m. Central Time on the same day.