Tesla delivers 358,000 vehicles in Q1, a 14% drop from previous quarter

Wall Street predicted 370,000 deliveries, based on StreetAccount projections, while a consensus compiled by the company by Tesla, made public on March 26, projected an average of 365,645 deliveries in the first quarter.

Stocks of Elon Musk's electric vehicle company fell over 4% on Thursday.

Delivery numbers grew 6% compared to a year prior, when Tesla reported 336,681. The first quarter of 2025 showed a 13% fall compared to the first quarter of 2024. Tesla's total deliveries for 2025 decreased to 1.64 million from 1.79 million in 2024.

Tesla's entry-level Model 3 sedan and its bestselling Model Y SUVs reached 341,893 for the period, according to the latest release.

Deliveries give the closest estimation of sales from Tesla, although they aren't precisely detailed in the company's investor reports.

While Musk has been shifting the company's focus to manufacturing an autonomous Cybercab and Optimus humanoid robots, Tesla has not yet released these products and still depends on car sales for most of its revenue.

In January, Tesla reported it would stop production of its high-end Model S and X vehicles, repurposing the manufacturing lines at its Fremont, California plant, to develop Optimus robots.

The S and X models had seen diminishing demand for Tesla. The 3 and Y made up 97% of the company's deliveries last year.

In a post on his platform X on Wednesday, Musk mentioned that orders for the S and X have "reached their end," with some remaining in inventory.

"We will have a formal event to commemorate the close of an era. I have a deep affection for those cars," he noted.

The uniquely styled, metallic Cybertruck, which Tesla started distributing to clients in late 2023, hasn't gained widespread popularity.

Tesla stands ready to increase deliveries of its all-electric Semi in 2026, a class 8 truck with a speculated range of 500 miles.

Regarding its energy sector, Tesla stated it deployed 8.8 gigawatt hours of battery energy storage systems in the first quarter, following a high of 14.2 gigawatt hours in the fourth quarter of 2025.

Tesla’s battery energy storage offerings include its Powerwall backup systems for residences, and larger Megapack and Megablock systems that service data centers and utilities.

Tesla shares fell 15% in the first quarter, continuing a pattern observed two years ago. The stock declined from January to March in 2024 and 2025 but recovered in all other quarters, ending the years higher.

The slump in Tesla's 2025 vehicle sales came from increased global competition and a consumer response against Musk due to his political affiliations.

Besides Musk's financial backing for President Donald Trump and his involvement in Trump's second administration, the Tesla CEO has shown support for Germany’s anti-immigrant far-right party AfD, and anti-Islam figure Tommy Robinson in the UK, among others.

Tesla, alongside the wider US electric vehicle market, faced another setback with the conclusion of a $7,500 federal credit for purchasing new EVs in September.

However, sales of pre-owned electric vehicles have climbed since tensions escalated following US and Israel's attacks on Iran in late February, leading to a conflict that has pushed oil prices higher.