Tesla on Wednesday reported first-quarter deliveries of almost 336,700 EVs, coming in well below analysts' expectations.
Wall Street had braced for a rough report, with analysts expecting 390,300 deliveries, Bloomberg said.
The total was 13% lower than in the same period in 2024, with Tesla attributing the decline to changes in production lines ahead of the new Model Y's release. It was also the company's worst quarter since the first three months of 2022.
Tesla stock fell about 4% before reversing course to jump more than 5% after Politico reported that President Donald Trump had told his inner circle Tesla CEO Elon Musk would soon step back from his White House role.
One of Tesla's biggest cheerleaders, the Wedbush analyst Dan Ives, called the numbers a "disaster on every metric," adding: "The Street and us knew a bad 1Q was coming but this was even worse than expected. The time has come for Musk ... it's a fork in the road moment."
Ross Gerber, an investment advisor, said on X that deliveries of more expensive models such as the Cybertruck, Model S, and Model X fell 25% to 12,881. He added: "The high-end EV business has totally eroded. The cybertruck is basically not selling. The brand is broken and may not be fixable."
The numbers offer the most comprehensive look yet at how Musk's biggest business is faring amid signs of decreasing demand, protests against the brand, and a rise in used-Tesla listings.
Worldwide declines
In recent weeks, there have been worrying signs for Tesla's sales as various countries have separately released monthly figures showing declining deliveries.
Tesla sales in both Australia and Germany had declined more than 70% year over year in February. Several other European countries, including Norway, Denmark, Sweden, and France, also saw a dip in year-over-year sales in February.
Its sales also recently declined in China and the US, two key markets for the EV giant. In March, the automaker sold about 79,000 electric vehicles in China, according to industry data released Wednesday, down 11.5% from last year.
The company's first-quarter sales figures arrived amid a growing boycott against Tesla. The movement calls for owners to offload their Teslas and sell their stock. It's a response to Tesla CEO Elon Musk's political involvement with the White House DOGE office and its efforts to downsize the federal workforce, cut costs, and improve overall government efficiency.
As protests have ramped up, Tesla dealerships and owners of the brand have become targets of vandalism, with some incidents involving arson and gunfire aimed at Tesla buildings and vehicles. President Donald Trump and Attorney General Pam Bondi have vowed to treat Tesla attacks as domestic terrorism.
While some Tesla owners who have faced backlash or harassment told Business Insider the experiences had strengthened their support of the company and its leader, others have shared plans to sell their EVs out of fear of retaliation and embarrassment of being associated with the polarizing brand.
Tesla's used-car market has also grown, with listings increasing by 33% this year, per Cox Automotive data. Tesla isn't alone — listings for other EVs have increased by 27% year to date, Cox said in an industry forecast.
While some attribute the rise to an aging car lineup, others say Musk's influence on the brand may be a factor.