Tesla is facing an unexpected drop in sales this quarter. Factors like the global market slowdown and the Model Y refresh have led to a significant decline in vehicle sales, reaching levels not seen since 2022. Here are the details:

Sharp Decline in Tesla’s Sales

Tesla is expected to deliver approximately 359,000 vehicles in Q1 2025. This represents a 7% drop compared to the same period last year and a 27% decline compared to the previous quarter. Such a large drop in the automotive industry is typically explained by economic crises or major production issues. However, the reasons for Tesla’s decline seem to be more complex.

In the European market, Tesla’s sales have dropped by up to 50%. In China, sales have shown a slight decline, but there are no major crisis signals. The real uncertainty lies in Tesla’s largest market, the U.S. The performance in the American market will determine the overall picture for Tesla by the end of this quarter.

Tesla management attributes the decline to the transition to the new version of the Model Y. However, in the past, even when facing factory closures or supply chain crises, the company didn’t experience such a sharp decline in sales. As a result, many investors and market analysts believe that, in addition to the Model Y transition, CEO Elon Musk’s controversial decisions also play a role in the sales drop.

Tesla’s upcoming financial reports are expected to show weak results. However, the company is likely to attribute the poor performance to the Model Y changes.

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