{"id":34418,"date":"2025-04-25T17:23:41","date_gmt":"2025-04-25T21:23:41","guid":{"rendered":"https:\/\/henrypayne.com\/?p=34418"},"modified":"2025-04-25T17:23:41","modified_gmt":"2025-04-25T21:23:41","slug":"perfect-storm-tesla-sales-buckle-under-competition-model-changeover-politics","status":"publish","type":"post","link":"https:\/\/henrypayne.com\/index.php\/2025\/04\/perfect-storm-tesla-sales-buckle-under-competition-model-changeover-politics","title":{"rendered":"Perfect storm: Tesla sales buckle under competition, model changeover, politics"},"content":{"rendered":"<p class=\"gnt_ar_b_p\">Hit by a perfect storm of politics, model-year changeovers and competition, Tesla sales have declined dramatically to open 2025.<\/p>\n<p class=\"gnt_ar_b_p\">The electric vehicle maker\u2019s sales dropped by 13% in the first quarter according to Cox Automotive, even as the overall electric vehicle segment grew by 11%. The sales swoon \u2014 coupled with a 34% drop in Tesla\u2019s stock \u2014 was the largest Tesla sales drop since the second quarter of 2022, when sales were hobbled by COVID-related supply chain issues.<\/p>\n<p class=\"gnt_ar_b_p\">The decline dovetails with the production rollout of the second generation of its best-selling vehicle, the Model Y SUV. Model Y sales cratered by 34% as its four production plants undergo a manufacturing changeover. The Texas-based brand\u2019s other volume model, the Model 3 sedan, holds promise for a Y rebound as the 3 went through a similar update a year ago and saw sales rebound in Q1 with 70% growth to 30,842 units.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"\" src=\"https:\/\/www.detroitnews.com\/gcdn\/authoring\/authoring-images\/2025\/04\/23\/PDTN\/83231695007-20250423-dgtesla-0058.jpg?width=660&amp;height=441&amp;fit=crop&amp;format=pjpg&amp;auto=webp\" alt=\"Dozens of Teslas await delivery in a parking lot at the Hunter\u2019s Square shopping center in Farmington Hills on Wednesday, April 23, 2025. The EV maker's sales were down in the first quarter even as overall sales of battery-powered models rose.\" width=\"534\" height=\"357\" \/><\/p>\n<figure class=\"gnt_em gnt_em_img\"><em>Dozens of Teslas await delivery in a parking lot at the Hunter\u2019s Square shopping center in Farmington Hills on Wednesday, April 23, 2025. The EV maker&#8217;s sales were down in the first quarter even as overall sales of battery-powered models rose. David Guralnick, The Detroit News<\/em><\/p>\n<div class=\"gnt_em_img_ccw gnt_em_img_ccw__cap gnt_em_img_ccw__crd\" data-c-caption=\"Dozens of Teslas await delivery in a parking lot at the Hunter\u2019s Square shopping center in Farmington Hills on Wednesday, April 23, 2025. The EV maker's sales were down in the first quarter even as overall sales of battery-powered models rose.\" data-c-credit=\"David Guralnick, The Detroit News\"><\/div>\n<\/figure>\n<p class=\"gnt_ar_b_p\">The EV siblings were the third and twelfth best-selling non-pickup vehicles in the U.S. market last year \u2014 an impressive achievement for a brand that has only sold volume vehicles in the United States for less than two decades. Lower-volume models had mixed results, with the Cybertruck pickup up 129% in Q1 while the Model S sedan and Model X SUV declined by over 30%.<\/p>\n<p class=\"gnt_ar_b_p\">The Tesla stock rollercoaster is nothing new, said iSeeCars auto analyst Karl Brauer, who noted wild rides over the last 15 years. Tesla faced challenges from a federal rescue in 2010, Model 3 \u201cproduction Hell\u201d in 2018 and political blowback from CEO Elon Musk\u2019s Twitter purchase in 2022.<\/p>\n<p class=\"gnt_ar_b_p\">But the slide in Tesla\u2019s traditionally torrid sales growth, Brauer says, is a different phenomenon.<\/p>\n<p class=\"gnt_ar_b_p\">\u201cThis is a resilient brand. I always wonder if the current event is the one that takes out Tesla,\u201d said the California-based industry veteran. \u201cBut there two big factors that didn\u2019t exist before: 1) Aging product with EV sales plateauing, and 2) more competition coming for this niche electric space.\u201d<\/p>\n<p class=\"gnt_ar_b_p\">EV market sales growth in Q1 was just a third of its 33% pace in 2023. Despite the quarterly numbers, Tesla remains by far the biggest player in the niche EV market with 44% market share \u2014 though that is off from 79% in 2020.<\/p>\n<figure class=\"gnt_em gnt_em_img\"><img loading=\"lazy\" decoding=\"async\" class=\"\" src=\"https:\/\/www.detroitnews.com\/gcdn\/authoring\/authoring-images\/2025\/04\/08\/PDTN\/82997402007-tesla-violence-somerstshowroom.jpg?width=660&amp;height=372&amp;fit=crop&amp;format=pjpg&amp;auto=webp\" alt=\"Somerset Mall Tesla showroom showcases a Model Y, Tesla's best-selling vehicle.\" width=\"506\" height=\"285\" \/><\/figure>\n<div class=\"gnt_em_img_ccw gnt_em_img_ccw__cap gnt_em_img_ccw__crd\" data-c-caption=\"Somerset Mall Tesla showroom showcases a Model Y, Tesla's best-selling vehicle.\" data-c-credit=\"Henry Payne, The Detroit News\">\n<p><em>Somerset Mall Tesla showroom showcases a Model Y, Tesla&#8217;s best-selling vehicle. Henry Payne, The Detroit News<\/em><\/p>\n<\/div>\n<p class=\"gnt_ar_b_p\">Q1 sales winners in the EV space included Chevrolet, which was up 114% year-over-year to 19,186 units sold, and Ford, which rose 12%. The Dearborn automaker was runner-up to Tesla (128,100 models sold in Q1) with 22,550 units sold.<\/p>\n<p class=\"gnt_ar_b_p\">\u201cWhile Tesla still dominates sales, volume peaked in 2023 and market share has declined since 2020,\u201d said Stephanie Valdez Streaty, Cox director of industry insights.<\/p>\n<aside id=\"gnt_atomsnc\" class=\"gnt_em gnt_em_anc\" data-g-r=\"lazy\" data-gl-method=\"loadAnc\" aria-label=\"Newsletter signup form\">\n<div class=\"label\" hidden=\"\"><\/div>\n<div class=\"container\">\n<div class=\"message\">\n<div class=\"title\">Get the\u00a0<span class=\"highlight\">Michigan Politics<\/span>\u00a0newsletter in your inbox.<\/div>\n<p class=\"description\">Washington and Lansing, red and blue, we&#8217;ve got your government covered.<\/p>\n<div class=\"frequency\">Delivery: Daily<\/div>\n<div class=\"container\">\n<div class=\"input-container populated\">\n<p><input autocomplete=\"off\" name=\"email\" required=\"\" type=\"email\" \/><\/p>\n<div class=\"clickable\"><\/div>\n<p><label>Your Email<\/label><\/p>\n<\/div>\n<div id=\"bar\">\n<div class=\"highlight\"><\/div>\n<div class=\"progress-primary\"><\/div>\n<div class=\"progress-secondary\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/aside>\n<p class=\"gnt_ar_b_p\">Ironically, the surge in competition has come at the same time that Tesla has opened its unparalleled Supercharger network to other brands, making it easier for customers to deal with range anxiety.<\/p>\n<p class=\"gnt_ar_b_p\">Also indicative of the slowdown in EV sales growth is the fall-off in used EVs&#8217; residual value. An iSeeCars study released this week found that half of the Top 10 used cars with the biggest price drops are EVs, including (in order) the Model S, Porsche Taycan, Model Y, Model 3 and Hyundai Kona Electric.<\/p>\n<figure class=\"gnt_em gnt_em_img\"><img loading=\"lazy\" decoding=\"async\" class=\"gnt_em_img_i\" src=\"https:\/\/www.detroitnews.com\/gcdn\/authoring\/authoring-images\/2025\/04\/08\/PDTN\/82997741007-tesla-violence-kentwoodvandals.jpg?width=660&amp;height=485&amp;fit=crop&amp;format=pjpg&amp;auto=webp\" alt=\"In Kentwood, Michigan, Tesla Cybertrucks were vandalized in an incident repeated across the country amid fierce backlash against CEO Elon Musk's role leading the Trump administration's Department of Government Efficiency.\" width=\"498\" height=\"366\" data-g-r=\"lazy\" \/><\/figure>\n<div class=\"gnt_em_img_ccw gnt_em_img_ccw__cap gnt_em_img_ccw__crd\" data-c-caption=\"In Kentwood, Michigan, Tesla Cybertrucks were vandalized in an incident repeated across the country amid fierce backlash against CEO Elon Musk's role leading the Trump administration's Department of Government Efficiency.\" data-c-credit=\"Kentwood Police Department\">\n<p><em>In Kentwood, Michigan, Tesla Cybertrucks were vandalized in an incident repeated across the country amid fierce backlash against CEO Elon Musk&#8217;s role leading the Trump administration&#8217;s Department of Government Efficiency. Kentwood Police Department<\/em><\/p>\n<\/div>\n<p class=\"gnt_ar_b_p\">Tesla has been intertwined with American politics since before the first Model S hit the road in 2012. With green activist Musk at the helm, the brand overtook the Toyota Prius as a moral status symbol with its affluent customer base receiving controversial government tax credits. A darling of Democratic politicians, the company scored a $465 million loan from President Barack Obama\u2019s Department of Energy to stay afloat through the 2010 financial crisis.<\/p>\n<p class=\"gnt_ar_b_p\">But as Musk turned rightward, political blowback got more intense. Musk\u2019s work for the Trump administration has put Tesla in the crosshairs again after his 2022 free-speech crusade that reinstated President Donald Trump on Twitter. Activists have targeted showrooms and vehicles with vandalism, and celebrity members of Tesla\u2019s green California base have encouraged sales boycotts.<\/p>\n<p class=\"gnt_ar_b_p\">The intimidation campaign has undeniably had an effect, with some customers telling The Detroit News they are avoiding Tesla for fear of being targeted.<\/p>\n<p class=\"gnt_ar_b_p\">Tesla declined comment for this story.<\/p>\n<p class=\"gnt_ar_b_p\">The EV maker\u2019s stock rose 3% Wednesday after a Q1 earnings call as Musk said he will spend more time with the company, which saw its profits drop 70% year over year. &#8220;Starting early next month, in May, my time allocation to DOGE will drop significantly,&#8221; the CEO told investors.<\/p>\n<figure class=\"gnt_em gnt_em_img\"><img loading=\"lazy\" decoding=\"async\" class=\"\" src=\"https:\/\/www.detroitnews.com\/gcdn\/authoring\/authoring-images\/2025\/04\/23\/PDTN\/83231697007-20250423-dgtesla-0003.jpg?width=660&amp;height=440&amp;fit=crop&amp;format=pjpg&amp;auto=webp\" alt=\"Teslas await delivery in a parking lot at the Hunter\u2019s Square shopping center in Farmington Hills on Wednesday, April 23, 2025. Cybertruck sales in particular have been disappointing for the EV maker.\" width=\"510\" height=\"340\" \/><\/figure>\n<div class=\"gnt_em_img_ccw gnt_em_img_ccw__cap gnt_em_img_ccw__crd\" data-c-caption=\"Teslas await delivery in a parking lot at the Hunter\u2019s Square shopping center in Farmington Hills on Wednesday, April 23, 2025. Cybertruck sales in particular have been disappointing for the EV maker.\" data-c-credit=\"David Guralnick, The Detroit News\">\n<p><em>Teslas await delivery in a parking lot at the Hunter\u2019s Square shopping center in Farmington Hills on Wednesday, April 23, 2025. Cybertruck sales in particular have been disappointing for the EV maker. David Guralnick, The Detroit News<\/em><\/p>\n<\/div>\n<p class=\"gnt_ar_b_p\">Tesla also announced its driverless robotaxi service will roll out in Austin, Texas, in June \u2014 joining Google\u2019s Waymo operation in the autonomous transportation race.<\/p>\n<p class=\"gnt_ar_b_p\">In the retail market, analyst Brauer said new product is the best antidote for the company\u2019s sales dip.<\/p>\n<p class=\"gnt_ar_b_p\">\u201cEven if Model Y sales improve, it\u2019s not going to shift momentum. Tesla needs a flood of new sales, and it has long promised a sub-$30,000 EV,\u201d he said, referencing what Tesla internally calls the Model Q. \u201cThat would be a game changer.\u201d<\/p>\n<p class=\"gnt_ar_b_p\">In the earnings call, Tesla told investors it intends to roll out a cheaper EV this June, though industry insiders expect that to be a sub-$40k version of the Model Y.<\/p>\n<p class=\"gnt_ar_b_p\">The Cybertruck was supposed to be a game changer when it was unveiled back in 2019. Musk hyped sales of 250,000 a year by 2025, but the pickup\u2019s production has been tempered by high costs and manufacturing issues, and Q1 deliveries \u2014 despite the 129% YOY increase \u2014 were just 6,406.<\/p>\n<p class=\"gnt_ar_b_p\"><em>Henry Payne is auto critic for The Detroit News. Find him at hpayne@detroitnews.com or @HenryEPayne<\/em>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hit by a perfect storm of politics, model-year changeovers and competition, Tesla sales have declined dramatically to open 2025. The electric vehicle maker\u2019s sales dropped by 13% in the first quarter according to Cox Automotive, even as the overall electric vehicle segment grew by 11%. The sales swoon \u2014 coupled with a 34% drop in [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"_links":{"self":[{"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/posts\/34418"}],"collection":[{"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/comments?post=34418"}],"version-history":[{"count":1,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/posts\/34418\/revisions"}],"predecessor-version":[{"id":34419,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/posts\/34418\/revisions\/34419"}],"wp:attachment":[{"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/media?parent=34418"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/categories?post=34418"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/tags?post=34418"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}