Tesla Sales Drop 13 Percent in 1st Quarter Amid Protests Over Musk and DOGE

Tesla says that the the drop in deliveries was in part due to the loss of several weeks of production of its Model Y.

Tesla CEO Elon Musk speaks during the official opening of the new Tesla electric car manufacturing plant near Gruenheide, Germany, on March 22, 2022. Christian Marquardt/Getty Images

Tesla’s first-quarter deliveries fell by 13 percent amid protests against CEO Elon Musk over his involvement in the Trump administration and the Department of Government Efficiency (DOGE).

In a statement issued on Wednesday, Tesla said it produced a total of 362,615 vehicles in the first three months of 2025, including 345,454 Model 3 and Model Y vehicles as well as 17,161 other vehicles, including the Cybertruck, the Model X, and Model S.

Overall, Tesla made 336,681 deliveries, including 323,800 Model 3 and Model Y vehicles and 12,881 other models in the first quarter, according to the company. But the numbers released Wednesday represent a downturn in production and delivery from the same period last year, when 386,810 units were shipped.

“While the changeover of Model Y lines across all four of our factories led to the loss of several weeks of production in Q1, the ramp of the New Model Y continues to go well,” the company said.

Musk has pledged a return to growth after Tesla’s annual deliveries dipped last year, but his advisory role to President Donald Trump, through which he has been instrumental in slashing federal spending and jobs, sparked backlash and some protests.

Tesla’s sales in key European markets fell in March, with sales in France and Sweden dropping for a third straight month. Meanwhile, the company began offering the refreshed Model Y with updated styling and enhanced interiors in China in late February and in the United States and Europe last month.

While Tesla may see fewer issues from the new 25 percent tariffs on imported vehicles due to its U.S.-based manufacturing, Musk has said cost implications could be significant for his company. Tesla has also warned about potential retaliatory tariffs in response to the levies.

In recent comments on Sunday at an event in Wisconsin, Musk said that his activity with DOGE and in the Trump administration is likely causing Tesla’s stock to drop, while blaming protests and vandalism against his company.

“This is a very expensive job, is what I’m saying,” Musk said, referring to his work in the government.

“What [protesters and vandals are] trying to do is put massive pressure on me, and Tesla, I guess, to you know ... stop doing this,” Musk said at the event. “My Tesla stock and the stock of everyone who holds Tesla has gone, went roughly in half. I mean, it’s a big deal.”

But he added, “Long term, I think Tesla stock’s going to do fine, so maybe it’s a buying opportunity.”

This week, Trump provided more details on when Musk might leave the government and noted that agency heads would work with DOGE after he departs. As a special government employee, Musk can only work for the administration for 130 days, meaning he may leave in late May.

Tesla shares have dropped by 30 percent since the start of 2025, and at the same time, the company’s stock has been cut nearly in half since a recent high in December 2024. According to Forbes magazine, Musk, who also owns SpaceX and social media platform X, is currently the wealthiest person in the world, with a net worth of around $371 billion.

Reuters contributed to this report.