While Tesla once dominated the electric vehicle landscape, the automotive giant now finds itself in increasingly choppy waters. The company’s global EV market share is slipping—down to 18% in early 2024 from 19% last year. Not a good look.
Meanwhile, China’s BYD isn’t just nipping at Tesla’s heels; it’s overtaken the American automaker in both BEV production and total EV sales.
The numbers tell a brutal story. Tesla’s Q1 2025 deliveries plummeted 13% year-over-year to 336,681 vehicles—its worst quarterly performance in three years. Analysts expected much more.
Tesla’s free fall continues with deliveries crashing 13%—a three-year low that has analysts raising red flags.
Production? Down 16%. The situation in key markets looks even bleaker: German sales crashed 76% in February compared to last year. France? Down 63.4%. China? A painful 49% drop. Ouch.
Tesla’s response has been predictable: slash prices. But those price cuts are eating away at profits like acid through metal. Automotive gross margins have tanked to 13.59%, with profit per vehicle down about 29% year-over-year to roughly $5,102. Not exactly the path to riches.
The company’s production woes aren’t helping either. Bottlenecks, supply chain disruptions, and ambitious expansion plans have created a perfect storm of operational headaches. The share price is now bouncing off the April 2024-to-2025 uptrend line at $261.84. The refreshed Model Y launch in February caused weeks of lost production.
And let’s not forget the recall of nearly every Cybertruck in March. Talk about timing.
Economic headwinds are blowing hard too. Higher interest rates make financing those pricey EVs tougher. Potential tariffs on imports could sting, considering China represents 21% of Tesla’s revenue.
Then there’s Elon. The CEO’s political activities and controversial social media presence haven’t exactly boosted the brand. With his attention scattered across multiple companies, investors are rightfully concerned. The company’s market value decline of 45% since December 2024 reflects these growing investor concerns.
Legacy automakers and hungry startups are closing in fast. Tesla’s once-insurmountable lead is shrinking daily. The road ahead? Definitely not on Autopilot.
