The electric automaker said it delivered 336,681 vehicles in Q1, down from 386,810 units a year ago.
Analysts expected Tesla to report deliveries of about 372,410 vehicles for the January-March period, according to an average estimate of 15 analysts from Visible Alpha, who lowered their forecasts in the past 30 days.
CEO Elon Musk has pledged a return to growth after Tesla’s annual deliveries dipped last year, but waning demand for its aging line up of EVs and a backlash against his political stance could make that promise a hard one to keep.
Musk’s advisory role to US President Donald Trump, through which he has been instrumental in firing thousands of federal workers and cutting humanitarian aid, has sparked discontent among some customers.
Protests at Tesla stores in the US and Europe have spiked, and Tesla cars are being vandalised.
Some data indicates a rise in Tesla owners trading in their vehicles.
Investors are waiting to see if refreshed models like the Model Y and incentives have helped counter weak demand and tough race from Chinese rivals including BYD and European competitors such as Volkswagen and BMW.
Tesla’s sales in key European markets fell again in March, with sales in France and Sweden dropping for a third straight month.
Tesla began offering the refreshed Model Y, featuring updated styling and enhanced interiors, in China late February and in the US and Europe last month.
Data from auto industry associations and analyst estimates point to notable declines in Tesla sales during the first two months of the year in the US, Europe, and China.
Tesla has indicated plans to launch a lower-priced model based on its existing platform this year, but is yet to release specific details about the vehicle.
Its pricey Cybertruck pickup, launched in late 2023, has seen limited demand due to its polarising trapezoidal design and quality concerns.
Tesla recently recalled nearly all Cybertrucks to address a potential exterior panel issue.
While Tesla may see less pain from the new 25% tariffs on imported vehicles due to its US-based manufacturing, Musk has said cost implications are “significant”.
Tesla has also warned about potential retaliatory tariffs in response to the levies.