Tesla Faces Lower Delivery Estimates and Investor Concerns in 2025

Analysts cite competition, aging product lineup, and brand sentiment as Tesla's Q1 deliveries are projected to decline 9.3% year-over-year.

Morgan Stanley has reduced Tesla's Q1 2025 delivery estimate to 351,000 vehicles, marking a 9.3% year-over-year decline.
Full-year 2025 delivery forecasts have also been lowered to 1.615 million units, representing a 9.8% drop compared to 2024.
Tesla's January and February sales saw significant declines across key markets, with Model Y sales particularly affected in the US, Europe, and China.
The company plans to produce a lower-cost Model Y in Shanghai, reportedly to regain market share in China, its second-largest market.
Investor confidence has been further impacted by a recall of 46,000 Cybertrucks and a $20 reduction in Tesla's price target by Morgan Stanley, now set at $410.