Tesla Struggles in Q1 2025 as Model Y Redesign Slows Production

Tesla's Q1 2025 deliveries expected at 377,592 units, impacted by Model Y redesign and weak Cybertruck sales. Analysts predict further decline.

Tesla is heading for its weakest quarterly delivery performance in over two years, with a company-compiled consensus for Q1 2025 sitting at 377,592 electric vehicles. This marks a steep decline from the more optimistic projection of over 450,000 units that circulated back in January.

The main factor behind the drop is the extensive Model Y refresh, codenamed “Juniper,” which affected production across four of Tesla’s global factories. The redesigned Model Y features improved aerodynamics, updated front and rear designs, enhanced cabin comfort including a rear passenger screen, and extended range up to 750 km in the RWD version. However, the transition led to reduced output and temporary slowdowns, weighing heavily on quarterly deliveries.

But the challenges go beyond Model Y. In Europe, Model 3 sales dropped by approximately 30%, and in the U.S., Tesla had to reintroduce 0% financing to boost demand. Meanwhile, only the higher-priced LR AWD Launch Edition of the new Model Y was delivered in limited numbers stateside.

The Cybertruck continues to underperform. Since its production began in November 2023, only around 46,000 units have been delivered. Thousands remain in inventory, and in March 2025, Tesla issued a full recall due to a manufacturing defect that could cause exterior panels to detach while driving — a serious safety risk.

In China, Tesla maintains volume but at the expense of margins, facing intense pressure from local EV competitors. Combined, these factors have raised concerns about brand perception and long-term stability. Analysts suggest the full-year 2025 forecast of 1.85 million deliveries may soon be revised downward.

Source: electrek.co