Tesla reported a drop in vehicle sales in the first quarter of 2025, marking the company’s weakest performance in about three years.
The dip comes amid growing uncertainty over potential U.S. auto tariffs and backlash against company CEO Elon Musk. But how did sales of Musk’s Tesla this quarter measure up to other auto manufacturers?
Sebastien Salom-Gomis/SIPA
Why It Matters
Tesla reported global deliveries of 336,681 vehicles from January to March, down from 387,000 during the same period last year, despite incentives like price cuts, zero-interest financing and promotional deals.
Tesla’s sales drop comes amid backlash against Musk’s involvement in the administration of President Donald Trump, along with hesitancy swirling around the potential affects on businesses due to the president’s tariffs.
Musk has become a central figure to the Trump administration, and his moves to cut federal spending as head of the Department of Government Efficiency have sparked protests against Tesla across Western countries.
The first quarter of 2025 marks a critical period for the auto industry, as major U.S.-focused manufacturers brace for tariffs under the second Trump administration.
Auto Tariffs: What to Know
On March 27, the president announced that a 25 percent tariff will be placed on imported cars and certain foreign-sourced automobile parts.
Trump previously said that if vehicles are made in the United States, they will not face tariffs, adding: “A lot of companies are going to be in great shape because they’ve already built their plant … Others will come into our country and build.”
The 25 percent tariff will be applied to imported passenger vehicles and light trucks. This means that cars made and assembled entirely within the U.S. using predominantly domestic parts are the least likely to be affected.
But even cars entirely assembled in the country will still feel the impact, depending on how heavily they rely on the imported parts. It’s difficult to define which cars are “Made in America,” since parts may be imported.
How Tesla Sales Compare to Ford, General Motors
Generally, sales figures from Tesla, Ford and General Motors can offer signals on how automakers are adapting to supply-chain pressures and potential changing consumer opinions.
Ford also faced a decline in U.S. sales—but not as severe as Tesla’s. The company sold 501,291 vehicles in the U.S. during its first quarter, per Reuters.
Overall, total Ford sales for the quarter decreased 1 percent year-to-year, mainly due to “daily rental fleet sales timing and lost volume from the discontinuation of the Ford Edge and Transit Connect,” according to a news release. But the Detroit-based automaker said that overall, Ford retail sales, not year-to-year, rose 5 percent in the first quarter.
In contrast to Tesla’s decline, General Motors said U.S. sales increased 17 percent in the first quarter, with double-digit spikes across all four of the company’s brands.
Chevrolet sales were up 14 percent, Cadillac retail sales rose 21 percent, GMC sales climbed 18 percent, and Buick posted its best quarter since 2006, with sales soaring 39 percent.
In 2023, for the first time, nondomestic automakers surpassed their domestic competition, building 4.94 million cars in the U.S. Detroit’s Big Three (Ford, Stellantis and General Motors) built just 4.6 million, according to Autos Drive America, a lobbying organization that works on behalf of U.S. operations of international motor vehicle manufacturers. Lucid, Rivian and Tesla accounted for 754,342 vehicles produced in the U.S.
What’s Next
Tesla faces a critical juncture as it navigates declining sales and growing public scrutiny of Musk’s actions. Its second quarter could help analysts determine whether the business will rebound or if this marks a longer-running downturn.
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