Tesla (NASDAQ: TSLA) shares closed 5% higher on Wednesday despite the electric vehicle maker reporting first-quarter 2025 deliveries that fell well short of analyst forecasts. However, the stock reversed course in pre-market trading Thursday, down around 6%, as stocks broadly declined following new tariff announcements from President Donald Trump.
Tesla delivered 336,681 vehicles in Q1, significantly below the consensus estimate of 390,000 units. Production totaled 362,615 vehicles during the quarter. The company attributed the shortfall to manufacturing disruptions tied to the Model Y refresh, noting that retooling across all four of its factories resulted in several weeks of lost output. Still, Tesla said the ramp-up of the updated Model Y is progressing well.
Deliveries of the Model 3 and Model Y, which comprise the majority of Tesla’s sales, reached 323,800 units, while its premium models—the Model S and Model X—accounted for 12,881 units.
The delivery miss comes as Tesla faces broader challenges, including intensifying competition in the EV space and growing political backlash against CEO Elon Musk, which some analysts say may be weighing on consumer sentiment.
Despite the disappointing report, Tesla shares saw a mid-day boost yesterday after a Politico article suggested that Musk might soon step back from his role at the Department of Government Efficiency (DOGE), an initiative under President Trump. The report claimed Trump had informed members of his Cabinet that Musk would be stepping aside in the coming weeks.
However, the White House swiftly denied the report. Press secretary Karoline Leavitt called the story “garbage,” emphasizing that both Musk and Trump have publicly stated he would leave his government post only after completing his work at DOGE.
Analysts remain divided on the brand impact of Musk’s political activity. Canaccord acknowledged the weak Q1 delivery figures but noted it is too early to determine any lasting reputational damage to Tesla.
Wedbush, by contrast, argued the brand crisis is having a clear and negative impact, though its analysts view Musk’s potential return to full-time leadership at Tesla as a bullish signal. They emphasized that Musk refocusing on the company could be a key positive as Tesla navigates a competitive and rapidly evolving EV landscape.
As of Thursday morning, Tesla (NASDAQ: TSLA) shares are trading around 6% lower alongside broader declines in tech stocks. Apple (NASDAQ: AAPL) and Tesla are among the hardest hit after Trump announced a sweeping set of new trade tariffs.
