Tesla's Deliveries Slide In Q1 Amid Production Setbacks, Political Backlash

Tesla Inc TSLA announced the details of its first-quarter production, deliveries, and deployment on Wednesday. The stock fell after the disclosure.

The electric vehicle company produced 362,615 vehicles (including 345,454 Model 3/Y), down from 433,371 a year ago.

It delivered 336,681 vehicles (323,800 Model 3/Y), down from 386,810 vehicles a year ago.

Also Read: Tesla Bets On Low-Cost EVs in China After February Sales Hit Two-Year Low

The company said that while the changeover of Model Y lines across all four of its factories led to the loss of several weeks of production in the first quarter, the ramp of the New Model Y continues to go well.

Tesla also deployed 10.4 GWh of energy storage products.

Tesla stock has plunged 32% year-to-date. The company’s U.S. registrations dropped 11% in January, while rivals like Ford Motor Co F and Volkswagen VWAGY saw a 44% surge.

Tesla’s EU registrations halved in January as brand sentiment and political backlash weigh on growth. Meanwhile, Musk announced that Tesla would double its vehicle production in the U.S. within two years.

Additionally, President Donald Trump transformed the White House to showcase Tesla vehicles in solidarity with his senior advisor and de facto head of the Department of Government Efficiency (DOGE), Musk and his company. Trump also purchased a Tesla Model S Plaid.

Musk has acknowledged the challenges of running his business while working with DOGE amid a massive decline in Tesla’s stock price.

Wedbush analyst Daniel Ives projected first-quarter deliveries in the 355,000-360,000 range. That’s down ~7%, courtesy of demand softness in Europe, the U.S., and China.

Ives estimated that 30% of the very soft first-quarter delivery number is related to Tesla chief Elon Musk, the brand, and DOGE. About 70% is more timing and non-brand headwind issues.

Ives projected first-quarter revenue of $24.05 billion and EPS of 56 cents. He expects the first quarter to be the “low point.”

Tesla’s full self-driving technology, affordable vehicle launch, more Model 3/Y refreshes, and autonomous and robotics/Optimus technology improvements “set the stage for a new era of growth,” according to the analyst.

Price Action: TSLA stock is down 1.20% at $265.23 at the last check on Wednesday.

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