Tesla's first quarter of 2025 delivered a double blow: vehicle deliveries fell well short of expectations in early April, and the earnings report three weeks later revealed the thinnest profit margin in years.
Deliveries: Worst Quarter Since 2022
Tesla reported 336,681 deliveries for Q1 2025 on April 2, missing the analyst consensus of approximately 377,590 by more than 40,000 units. Production came in at 362,615 vehicles, meaning Tesla built significantly more than it sold.
| Metric | Q1 2025 | Q1 2024 | Change |
|---|---|---|---|
| Total deliveries | 336,681 | 386,810 | -13.0% |
| Total production | 362,615 | 433,371 | -16.3% |
| Model 3/Y deliveries | 323,800 | 369,783 | -12.4% |
| Other models | 12,881 | 17,027 | -24.4% |
The company cited the Model Y production line changeover across all four factories as the primary cause. Tesla's share price, already down 36% in Q1, fell a further 4% on the news.
Earnings: $409 Million Profit on $19.3 Billion Revenue
The earnings report on April 23 painted an even more concerning picture. Revenue fell 9% year-over-year, while net income collapsed 71%.
| Metric | Q1 2025 | Q1 2024 | Change |
|---|---|---|---|
| Revenue | $19.34B | $21.30B | -9.2% |
| Net income | $409M | $1.39B | -70.6% |
| Gross profit | $3.15B | $3.70B | -14.7% |
| Gross margin | 16.3% | 17.4% | -1.1pp |
Tesla attributed the revenue decline to lower average selling prices and the Model Y transition. Notably, the company delayed its full-year guidance to the following quarter — an unusual step that signalled uncertainty about the road ahead.
European Context
For European owners, the Q1 results confirmed what registration data already showed: Tesla's volume decline is global, not just a European phenomenon. China retail sales held relatively steady at 134,607 units (+1.7% year-over-year), suggesting Europe bore a disproportionate share of the downturn.
The question facing European Tesla watchers is whether Q1 represents the trough — the Model Y changeover is complete, and the refreshed vehicle is now in full production at Gigafactory Berlin.
Update (March 2026): Q1 2025 did prove to be the low point. Tesla's Q3 2025 set a new delivery record at 497,099 units, though full-year 2025 deliveries still declined 8.4% to approximately 1.64 million vehicles.