Tesla Faces Dismal Sales Amid Backlash Against Elon Musk

The electric car manufacturer reported a surprising 13% decrease in deliveries, attributing the decline to both competition and Musk's controversial role in politics, leading to protests and boycotts worldwide.

Tesla has encountered a significant downturn as its sales reached the lowest point in three years, signaling a hostile reaction towards its CEO, Elon Musk. The company revealed that it delivered around 337,000 electric vehicles in the first quarter of this year, marking a 13% decrease compared to the previous year. Following this disheartening announcement, Tesla's shares experienced a steep decline.

While the electric vehicle market has become increasingly competitive, notably from Chinese manufacturer BYD, many experts believe that Musk's contentious political affiliations have played a pivotal role in the recent sales slump. Tesla attributes this downturn partly to the transition to a new model of its flagship car, yet the backlash is palpable.

Protests and boycotts against Musk's brand have erupted globally, driven by his outspoken political stance and involvement in President Donald Trump's administration, specifically through the Department of Government Efficiency (DOGE). Musk has been criticized for his substantial financial contributions to Trump's campaign, totaling over $250 million, and his recent monetary support for a losing candidate in Wisconsin, former Republican attorney general Brad Schimel.

These political controversies have sparked demonstrations dubbed "Tesla Takedown" at dealerships across the US and Europe, culminating in the vandalism of Tesla vehicles. Musk's leadership has faced scrutiny, especially after he candidly expressed difficulties in managing his business ventures, stating, "Frankly, I can't believe I'm here doing this."

As a consequence, Tesla's stock has dwindled, losing more than a third of its value over the past year. "We are not going to look at these numbers with rose-colored glasses... they were a disaster on every metric," commented Wedbush analyst Dan Ives. He further noted that Musk's increasing political engagement through DOGE continues to damage the Tesla brand significantly.