Elon Musk says Tesla sales rebound will go back up after bad results.

Tesla sales rebound

Tesla’s recent sales problems have been widely reported.

Despite record sales in the most recent quarter, the American electric car manufacturer’s ten-year rise came to a halt last year. Subsequently, the company’s worldwide deliveries fell by 13% in the first quarter of this year. Sales of electric vehicles increased concurrently in China, Europe, and the United States.

However, Tesla’s vocal CEO, Elon Musk, has now offered a more formal explanation, saying that it all boils down to the retooling required for the updated Model Y, which is by some measures the best-selling car and the best-selling EV in the world.

In January, the 2025 Tesla Model Y made its debut. In the United States, sales started in March.

Image courtesy of Tesla
In a CNBC interview, Musk stated, “As for Q1, we had a global factory changeover for the Model Y.” A new model of the Model Y was released, necessitating the closure of factories all around the world. The CEO said, “You know, if the factories are retooling, we can’t make cars because the Model Y is the best-selling car in the world.”

According to Musk, the first quarter is the ideal time to retool manufacturing for an updated car because that is when demand is at its lowest throughout the year. “At this point, we’ve seen a major rebound in demand,” he continued.

However, sales data has not yet shown this purported recovery.

Tesla’s financial results continued to plummet in April, the first month of the second quarter, particularly in Europe, where it saw declines of up to 80% in certain nations. While the total EV market in China increased 38% last month, Tesla sales decreased 9%.

Since Tesla only releases quarterly sales statistics and April sales figures are not yet available in the US, we will need to rely on projections from experts like S&P Global Mobility and Cox Automotive. However, a scheduled production halt at the company’s Austin, Texas, facility and the launch of a less expensive entry-level Model Y are indications that demand isn’t exactly booming at the moment.

Musk’s contentious relationship with President Donald Trump and the salute-that-wasn’t-a-salute are major factors contributing to the decline in sales. But the CEO of Tesla doesn’t find it particularly noteworthy.

Regarding the possible harm to his brand that could result from his involvement with the government, Musk stated, “There have been some pros and cons.” “How much do you care about the CEO’s political beliefs when you purchase a product, or are you even aware of them?” The CEO of Tesla stated in his CNBC interview.

We’ll soon discover out when the second quarter 2025 sales data arrives.