Wedbush Analyst Calls Tesla's Q1 Deliveries a 'Disaster'

Tesla's recent first-quarter delivery figures have sparked significant concern among investors, with Wedbush analyst Dan Ives labeling the results a "disaster on every metric." The company reported 336,681 vehicle deliveries, falling short of Wall Street's expectations and raising questions about CEO Elon Musk's focus amid his political engagements.

Key Takeaways

Tesla delivered 336,681 vehicles in Q1 2025, missing estimates of 352,000.
Ives criticized the performance, calling it a disaster and urging Musk to refocus on Tesla.
The stock initially dropped over 5% but rebounded after news of Musk potentially stepping back from government duties.
Despite the disappointing delivery numbers, Tesla's energy division showed strong growth in energy storage deployments.

Delivery Figures Fall Short

Tesla's Q1 delivery numbers were disappointing, with the company falling short of both Wall Street estimates and internal expectations. The reported figure of 336,681 vehicles was significantly below the anticipated 352,000, leading to a sharp reaction from investors and analysts alike.

Ives noted that Tesla lost several weeks of production due to the ramp-up of the new Model Y across its factories, which contributed to the lackluster performance. He emphasized that while some factors were understandable, the overall results were still alarming.

Musk's Political Engagements Under Scrutiny

Ives pointed out that Musk's involvement in the U.S. government, particularly with the Department of Government Efficiency (DOGE), has created distractions that may be affecting Tesla's brand and performance. He stated, "The more political he gets with DOGE, the more the brand suffers."

This situation has led to a critical moment for Musk, as he must navigate the challenges posed by his dual roles. Ives believes that Musk needs to prioritize Tesla to avoid further damage to the brand.

Stock Market Reaction

Following the release of the delivery figures, Tesla's stock experienced a volatile day. Initially, shares dropped over 5% but quickly rebounded by 8% after reports surfaced that Musk might step back from his government role. Investors appeared to respond positively to the prospect of Musk refocusing on Tesla, indicating a desire for more direct leadership from the CEO.

Bright Spot in Energy Division

Despite the disappointing automotive delivery figures, Tesla's energy division reported impressive growth. The company deployed 10.4 GWh of energy storage products in Q1, marking a 156% increase year-over-year. This performance highlights the potential of Tesla's energy initiatives, even as the automotive side faces challenges.

Ives acknowledged the importance of Tesla's advancements in autonomous driving technology, stating that the rollout of Full Self-Driving (FSD) could significantly impact the company's future. He emphasized that Tesla is poised to lead the autonomous market, which could be valued at $1 trillion.

Conclusion

The first quarter of 2025 has proven to be a challenging period for Tesla, with disappointing delivery figures and concerns over Musk's focus. However, the strong performance of the energy division offers a glimmer of hope. As the company navigates this turbulent time, the actions taken by Musk in the coming weeks will be crucial for restoring investor confidence and ensuring Tesla's long-term success.