Tesla (TSLA, Financials) shares declined on Wednesday after the electric vehicle maker reported first-quarter deliveries that fell short of analyst estimates and marked a year-over-year decline in both deliveries and production.

Down from 386,810 cars a year earlier, the firm sold 336,681 cars in the first quarter of 2025. From 433,371 in the first quarter of 2024, vehicle manufacturing fell to 362,615.

Tesla ascribed the decline in output to factory retooling for the revised Model Y, which started rolling out earlier this year. The shortfall follows a pattern from the last quarter, when the business likewise announced results below expectations, hence recording its first yearly drop in deliveries. Tesla said in January that it anticipates deliveries to start growing again later this year. The disappointing results come against more general worries about Chief Executive Elon Musk’s participation in American politics. Investors and experts have criticized Musk’s connections to the Trump administration; some have even called for him to spend more time on Tesla and his other companies.

Key foreign markets have also proven difficult for Tesla. While car registrations in China and several European nations have allegedly dropped since the beginning of the year, the company’s showrooms have been targeted by demonstrations and vandalism in recent weeks.

Tesla said that after the April 22 market close, it would publish first-quarter financial data.

This article first appeared on GuruFocus.