Tesla’s sales took a nosedive in the first three months of 2025, with the electric car maker reporting its steepest delivery drop ever on Wednesday, April 2. Tesla delivered 336,681 vehicles from January to March, down 13% from 386,810 a year ago, accordint to the company’s statement. It’s the worst sales slump in Tesla’s 15-year public history, worse than late 2022’s 54% crash, and it’s got everyone—Wall Street, fans, even rivals—talking about what’s gone wrong for Elon Musk’s flagship company just 72 days into Donald Trump’s second term.
The drop’s a shocker. Tesla built 362,615 cars this quarter but couldn’t move them—26,000 fewer than production, a gap that’s ringing alarm bells. Last year’s first quarter saw 422,875 deliveries, and even the tough end of 2024 hit 484,507. This time, analysts saw it coming but not this bad—CNN Business says they pegged sales as low as 350,000, still 13,000 short. Shares tanked 5% in pre-market trading Wednesday, adding to a 44% slide since December’s all-time high of $479.86, wiping out over $460 billion in market value. “This is a train wreck,” Wedbush’s Dan Ives called it, a “black eye” for Tesla’s story.
What’s behind it? Competition’s biting hard. China’s BYD sold 416,000 pure EVs this quarter—up 39% from last year—stealing Tesla’s crown as the world’s top EV seller again. BYD’s cars are cheaper, and their new charging tech—250 miles in five minutes—beats Tesla’s Superchargers, says Bloomberg. In Europe, Tesla’s sales cratered 49% in January and February combined, even as EV sales there jumped 28%, per the European Automobile Manufacturers’ Association. France saw a 63% plunge in January alone, Germany 76% in February. Volkswagen and BMW are eating Tesla’s lunch there, selling 20,000 and 19,000 EVs last month, up 180% and big, says The Guardian.
Then there’s Elon Musk. His role as head of Trump’s Department of Government Efficiency (DOGE) is turning heads—and turning off buyers. Since November, Musk’s been slashing federal jobs—HHS lost 10,000 this week—and pushing Trump’s agenda, like today’s tariff bomb. Tesla’s showrooms and charging stations are protest hotspots now. In New York, crowds chanted “Stop the coup” last week; in Massachusetts, a charging station got torched; in France, a dozen Teslas burned. Polls show the damage—Morning Consult says 32% of U.S. buyers won’t touch Tesla now, up from 17% in 2021. “Musk’s Trump ties are poison,” says GLJ’s Gordon Johnson. “Liberals—Tesla’s old base—are done.”
Trump’s tariffs aren’t helping either. Today’s “Liberation Day” announcement—25% on auto imports, 20% more on China, 25% on steel—hits Tesla’s supply chain. Canada and Mexico, key parts suppliers, face 25% on non-USMCA goods, according to Reuters. Tesla’s Shanghai plant, pumping out half its cars, could see exports to Europe slapped with extra costs, says TIME. “This is chaos for planning,” a Detroit supplier told Reuters, echoing U.S. firms begging for clarity. Tesla’s statement didn’t mention tariffs or protests—just a Model Y update that paused production for weeks at all four factories: Austin, Shanghai, Berlin, and Fremont. “Thanks to our team and fans,” they posted on X, but that’s cold comfort.
The U.S. isn’t immune. S&P Global Mobility says Tesla’s January sales dropped 11% here, while rivals like Ford (up 54%) and Chevy gained. California, Tesla’s biggest market, saw a 12% yearly fall in 2024, with Model 3 sales down 36%, per Bloomberg. Blue states are ditching Tesla—65% of owners there bought again, down from 72%—while red states ticked up to 48.2%, per S&P. “Brand erosion’s real,” says Bank of America’s John Murphy, though he bets the new Model Y, rolling out soon, could lift sales by summer.
Musk’s juggling act isn’t landing. On Fox Business Monday, he admitted running Tesla “with great difficulty” while at DOGE, promising to stay a year. His X post—“It’ll be fine long-term”—didn’t stop the bleeding. Investors are jittery—shares hit $305 Tuesday, and the “Trump bump” from November’s election is gone. Tesla’s still up 54% over 12 months, but 2025’s 36% plunge stings. BYD’s poised to take the yearly EV sales crown if this keeps up—1.76 million to Tesla’s 1.79 million in 2024, now trending south.
Tesla’s got plans—cheaper models this summer, robotaxis in Austin by June—but skeptics abound. “Musk’s promises are old news,” says InsideEVs. The Cybertruck’s a dud—2,619 sold U.S.-wide, down 32.5% this year, reported Cox Automotive. Europe won’t take it—too big, too heavy, according to Ars Technica. Analysts see darker days unless Musk turns it around fast. For now, Tesla’s sales plunge is a loud wake-up call—competition’s fierce, the brand’s bruised, and Trump’s trade war isn’t the lifeline some hoped. The Q1 earnings call on April 22, better have answers.