Tesla, Inc .’s deliveries took a significant 13% hit, with Tesla reaching a total of 336,681 vehicles delivered in Q1 of 2025. The decline came as the company temporarily suspended production at its factories to upgrade manufacturing lines for a refreshed version of its popular Model Y electric SUVs. All of this opens up a whole different bag of worries ahead of Tesla’s bad news earnings report. The detailed report is expected to be released Tuesday after the market closes.
What’s more, their deliveries are down through the roof. This significant drop underscores the ongoing struggles that the automaker is facing as it adapts to an increasingly competitive environment. Tesla had attributed the decrease in figures due to a production standstill. This pause was necessary to allow TPI to implement upgrades aimed at increasing the efficiency and productivity of its manufacturing processes. The incorporates new design elements, features and technology and will be an integral part of Tesla’s product mix going forward.
In addition to delivery declines, Tesla has sought an exemption from the U.S. Trade Representative for equipment imported from China that is utilized in its factories. Renewed anxieties over tariffs have taken center stage. Earlier this month, former President Donald Trump announced tariffs across the board on multiple imports. Elon Musk famously went public with his break from the Trump administration on tariffs, justifying his condemnation for the destructive effect they’d have bad for business at scale.
On the employee front, Musk addressed Tesla staff during an all-hands meeting, reassuring them that the company remains in capable hands. He urged staff to “hold onto your shares,” a vote of confidence in GE’s fortunes down the line even as it pointing his employees to the exit this time. Musk’s remarks were not without controversy. He referred to Peter Navarro, Trump’s top trade advisor, as a “moron” and “dumber than a sack of bricks” on social media platform X, reflecting the complexities of Musk’s stance on trade issues.
Tesla’s stock price has taken passengers on a roller coaster ride in recent weeks, with its own earnings performance and overall market conditions coming into play. Investors are keenly awaiting the earnings report to gauge how the company plans to navigate these challenges and whether it can rebound from the recent decline in deliveries.