Tesla’s Q1 deliveries suffered their worst decline since 2012, as a political backlash, competition, and falling demand wreaked havoc on Musk’s empire

Tesla is in freefall. The electric vehicle giant has suffered its worst year-on-year sales drop in over a decade, with deliveries plunging 13% in the first quarter of 2025.

The company reported 336,681 vehicles delivered between January and March—its worst performance since Q2 2012 when Tesla was a niche player struggling to gain traction. The dismal figures sent Tesla’s stock tumbling over 5% in pre-market trading.

Musk, once celebrated as the world’s foremost tech visionary, is now at the centre of a growing political storm. His public backing of Donald Trump and controversial statements have triggered boycotts, protests, and arson attacks on Tesla showrooms across the US and Europe.

The situation is particularly dire in Germany, where Tesla sales collapsed by 76% in February, following Musk’s alleged support for the far-right AfD party. The crisis extends to other key European markets—Tesla reported a 41% drop in France, 55% in Sweden and the Netherlands, and 12.5% in Norway in March.

Meanwhile, Tesla is also feeling the squeeze from Chinese EV rivals, particularly BYD, which outpaced Tesla with 416,388 electric cars sold in Q1. Even in China, Tesla’s most important growth market, sales slumped 11.5% in March.

Adding to Tesla’s woes, Musk’s bold 20-30% growth prediction for 2025 now appears laughably optimistic. For the second consecutive year, Tesla has posted a Q1 sales decline, a sign that its dominance is slipping amid increasing competition and slowing EV adoption.

Even Trump’s White House intervention—where he publicly praised Musk and Tesla—has done little to stem the downward spiral. And with Trump’s proposed tariffs set to hit later this year, analysts warn Tesla’s troubles may only be beginning.

The only bright spot? Tesla’s energy storage division, which saw a 152% year-on-year increase, installing 10.4 GWh of energy storage in Q1. But unless Musk can reverse the downward trajectory of car sales, Tesla’s golden era may be coming to an end.