Tesla's Model Y deliveries for Q1 receive a reduction due to the vehicle's upgrade
Elon Musk has stepped away from his active leadership role at Dogecoin (DOGE), leaving his position by late May 2025. Despite his departure, his influence continues to be felt as DOGE seeks to establish itself within government structures, sparking scrutiny and criticism from lawmakers.
Meanwhile, Tesla's Q1 2025 performance saw a 9% decline in revenue year-over-year to $19.34 billion. Automotive margins slipped to 16.3%, and earnings per share underperformed estimates by nearly 29%. These results led Tesla management to withdraw full-year 2025 growth guidance, citing "evolving trade policies" and "uncertain macroeconomic conditions" as challenges.
Experts attribute some of Tesla's struggles in Q1 to a mixture of production difficulties, intensifying market competition, and the distraction from Elon Musk’s prior high-profile political involvements. However, Musk's withdrawal from political engagements and DOGE activities corresponds with a strategic realignment back to Tesla's core business.
Tesla produced 362,615 vehicles in Q1 2025, slightly lower due to factory upgrades for the new Model Y. The majority of deliveries for the quarter came from the Model 3 and Model Y lineup, totaling over 323,000. Tesla also deployed 10.4 gigawatt-hours of energy storage in Q1 2025 and delivered 336,681 vehicles.
Analyst Dan Ives, a Tesla bull, described the Q1 deliveries as "bad" and a "disaster on every metric." Despite these challenges, shares of Tesla are up 5% for the day.
A live webcast and Q&A session with Tesla management will take place at 4:30 p.m. Central / 5:30 p.m. Eastern on Tesla's investor relations website. A replay of the webcast will be available about two hours after the broadcast.
No specific information about the delivery numbers for the Model S and Model X or the impact of factory upgrades on the production of the new Model Y is provided. The first quarter of 2025 was a strong quarter for Tesla's energy business, but more details will be revealed during the upcoming webcast and Q&A session.
Elon Musk's focus may shift towards Tesla's core business, as electric vehicles and technology advancements become increasingly relevant to the company's lifestyle offerings. In this new era, gadgets like Tesla's electric vehicles and energy storage systems could potentially outshine traditional luxuries such as cars and compete with cutting-edge tech devices.
