Tesla faces challenges: Declining public interest and falling deliveries

Tesla, a pioneer in the electric vehicle industry, is entering the first quarter of 2025 with troubling news. The company is grappling with both a decline in public support and a significant drop in vehicle deliveries. A growing negative perception of CEO Elon Musk, coupled with production slowdowns, is putting pressure on Tesla’s market position.


While Tesla’s brand image has fluctuated over the years, recent data indicates a noticeable decline. A recent survey revealed that 67% of Americans do not consider buying a Tesla. One of the main reasons behind this negative perception is CEO Elon Musk. About 37% of respondents directly attributed their reluctance to Musk, while the overall unfavorable opinion of him has reached 55%.

Not only is Tesla losing consumer trust, but its delivery figures are also taking a hit. According to investor relations reports, Tesla is expected to deliver 377,592 vehicles in the first quarter of 2025. If this projection holds, it will mark the lowest quarterly delivery count in over two years, a level last seen in Q3 2022.

One of the biggest factors behind this downturn is the production shift in the Model Y lineup. Tesla has halted the old Model Y production across four factories to transition to a new version, causing significant delivery delays. Additionally, weakening demand in the European market has further exacerbated the issue. The initial quarterly delivery estimate of 450,000 vehicles has now been revised downward by approximately 75,000 units.

The Model 3 is also struggling. Sales in Europe have dropped by around 30%, and Tesla had to reintroduce a zero-interest financing campaign in the U.S. to attract buyers. Meanwhile, the launch of the new Model Y is limited to the pricier LR AWD Launch Edition, further restricting overall delivery numbers.

Tesla is facing a crucial test, not just in production and sales but also in brand perception. The simultaneous decline in public interest and delivery figures raises questions about the company’s strategy for the coming quarters. With increasing competition in the EV market, all eyes are on Tesla to see how it navigates this challenging period. 

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