Tesla, an American manufacturer of electric vehicles, faces a difficult start for 2025, because the giant EV is ready for a difficult first quarter, while he is preparing to publish his Q1 report.
The company is currently faced with a plethora of challenges, in particular the demand for demand in Europe, reflecting both operational difficulties and the market, growing competition in China and a reaction against the political role of the CEO Elon Musk in the administration of Trump.
Tesla and her dealers were targeted in a series of attacks across the country while the protests of furious liberals Drastic cuts to the federal government. With its vandalized exhibition halls, which have seen production lines on break, the automaker is currently faced with an important problem. The climbing of vandalism reports among Tesla dealerships and charging stations in the United States prompted the FBI to create a working group to target the authors.
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Musk revealed his plan to fight against what he calls “domestic terrorists” Tesla cars and exhibition halls. Also, the American president Donald Trump said last month that anyone surprised to engage in vandalism would be considered domestic terrorists, An assertion reiterated.
Following these challenges, analysts provide 390,000 deliveries for the period, against 460,000 projected in January. In addition, Wall Street analysts have reduced their expectations while Musk’s political maneuvers have fueled a reaction from consumers who eroded global demand for the best-selling electric vehicles in the United States.
Tesla is currently fighting with profitability, while sales in California, its main market in the United States, fell 31% in January compared to a year ago. European figures are worse, lowering 43% in the first two months of 2025. In Europe, sales plunged approximately half in the first two months of the year, even if sales of electric vehicles across the industry increased by 28%. Sales figures in France showed a decrease of 37% in March, marking the third consecutive monthly drop and the lowest quarter of the country since 2021.
In China, one of its most important markets, Tesla is struggling with intensified competition, where manufacturers of national electric vehicles like Byd gain land. The company used price reductions to maintain the market share, which, while increasing the volume of sales in certain cases (such as a record of 196,902 deliveries in China in the fourth quarter of 2024), tightened car margins. The margins reached a weakness in the fourth quarter of 2024 and should face additional pressure in T1 2025 due to the inactivity capacity and current price reductions. Sales of its vehicles crashed 29% until February.
This drop in the number of sales will set the tone for the rest of the year, because Tesla aims to return to growth after having recorded its first annual sales decrease in more than a decade last year. The first quarter is generally the slowest in Tesla in terms of sales, in accordance with the broader trends in the industry. In addition to this, its four factories have been scheduled to reorganize an updated model SUV.
“There are disturbances of the offer due to the Herculean task they have accomplished,” said Ben Kallo, main research analyst at Baird. “They accelerate four factories, then resize them on three different supply chains. I think it will also spread ” In the second quarter, he said in an interview.
Another layer of complexity comes from external perceptions linked to the political participation of the CEO Elon Musk. The role of Musk in the Ministry of Government Effectiveness of the Trump Administration (DOGE) aroused controversy, certain analysts and investors pointing to potential “damage to the brand” as a factor in falling demand. The demonstrations and vandalism targeting Tesla in the United States and abroad, alongside a reported drop of $ 15 billion in the value of the brand in 2024, highlight this feeling.
However, the extent to which this affects sales remains debated, some arguing that supply problems, such as the transition from model Y, prevail over these concerns.
