Tesla has reported its lowest vehicle sales in three years, sparking a fall in stock value as backlash against CEO Elon Musk's political actions comes into play.
Tesla Sales Hit Three-Year Low Amid Musk's Political Backlash
Tesla Sales Hit Three-Year Low Amid Musk's Political Backlash
Sales drop follows controversy from CEO's political involvement and competition
Tesla's sales figures have skidded to their lowest level in three years amid growing backlash against CEO Elon Musk, with the electric car manufacturer delivering nearly 337,000 vehicles in the first quarter of 2025. This translates to a significant 13% decline compared to the same period last year. The disappointing numbers led to a drop in Tesla's shares during early trading on Wednesday.
Industry experts suggest that while the company faces fierce competition from Chinese automaker BYD, Musk's controversial political affiliations have also played a crucial role in this downturn. The backlash is directed towards Musk's recent involvement with the Trump administration, particularly his leadership of the Department of Government Efficiency (DOGE) aimed at reducing federal spending and workforce.
Recent efforts by Musk in political arenas have spurred protests and boycotts of Tesla worldwide, sparking concerns among investors. Notably, early Tesla investor Ross Gerber expressed disappointment over the company's numbers, stating, "These numbers suck," and even suggested that the brand is "broken and may not be fixable," calling for Musk's removal from the CEO position.
In a twist of fortunes, a Politico report emerged claiming that Trump had discussed Musk stepping back from his political role soon, causing a brief increase in Tesla's share prices. However, this report was quickly dismissed by the White House as misinformation.
Despite Musk’s political endeavors, experts believe they are adversely affecting Tesla's branding. Analyst Dan Ives emphasized, "The more political [Musk] gets with DOGE, the more the brand suffers." Furthermore, Tesla's stock has tumbled over 25% since the beginning of this year.
The company, while not commenting directly on the sales report, released a statement indicating that the numbers represent just two performance metrics and should not be regarded as definitive indicators of quarterly performance. A more detailed earnings report is scheduled for release on April 22.
Adding to the scrutiny, Randi Weingarten, president of the American Federation of Teachers, reached out to public pension funds regarding Tesla's challenging performance, hinting that Musk's political distractions are detrimental to business operations. Meanwhile, New York City's comptroller has announced plans to sue Tesla on behalf of local pension funds, citing significant losses driven by Tesla's dropping stock price.
As the situation evolves, stakeholders are increasingly concerned that Musk's political interests could undermine Tesla’s stability and growth prospects, raising questions about the company's direction moving forward.
Industry experts suggest that while the company faces fierce competition from Chinese automaker BYD, Musk's controversial political affiliations have also played a crucial role in this downturn. The backlash is directed towards Musk's recent involvement with the Trump administration, particularly his leadership of the Department of Government Efficiency (DOGE) aimed at reducing federal spending and workforce.
Recent efforts by Musk in political arenas have spurred protests and boycotts of Tesla worldwide, sparking concerns among investors. Notably, early Tesla investor Ross Gerber expressed disappointment over the company's numbers, stating, "These numbers suck," and even suggested that the brand is "broken and may not be fixable," calling for Musk's removal from the CEO position.
In a twist of fortunes, a Politico report emerged claiming that Trump had discussed Musk stepping back from his political role soon, causing a brief increase in Tesla's share prices. However, this report was quickly dismissed by the White House as misinformation.
Despite Musk’s political endeavors, experts believe they are adversely affecting Tesla's branding. Analyst Dan Ives emphasized, "The more political [Musk] gets with DOGE, the more the brand suffers." Furthermore, Tesla's stock has tumbled over 25% since the beginning of this year.
The company, while not commenting directly on the sales report, released a statement indicating that the numbers represent just two performance metrics and should not be regarded as definitive indicators of quarterly performance. A more detailed earnings report is scheduled for release on April 22.
Adding to the scrutiny, Randi Weingarten, president of the American Federation of Teachers, reached out to public pension funds regarding Tesla's challenging performance, hinting that Musk's political distractions are detrimental to business operations. Meanwhile, New York City's comptroller has announced plans to sue Tesla on behalf of local pension funds, citing significant losses driven by Tesla's dropping stock price.
As the situation evolves, stakeholders are increasingly concerned that Musk's political interests could undermine Tesla’s stability and growth prospects, raising questions about the company's direction moving forward.
