Tesla, the electric vehicle giant, has reported a significant decline in sales, marking its lowest delivery figures in three years. In the first quarter of 2025, the company delivered nearly 337,000 electric vehicles, reflecting a 13% decrease compared to the same period last year. This downturn has sent Tesla’s stock tumbling in early trading, raising concerns among investors and analysts alike.
The decline in sales comes at a time when Tesla is grappling with increasing competition from rivals, particularly the Chinese electric vehicle manufacturer BYD. However, many experts believe that the controversy surrounding CEO Elon Musk’s political activities has played a substantial role in the company’s struggles. Musk’s involvement in the Trump administration, particularly his leadership of the Department of Government Efficiency (DOGE), has drawn backlash and protests from various groups, leading to a tarnished brand image.
Early Tesla investor Ross Gerber, who once supported Musk, expressed his discontent on social media, stating, “These numbers suck. The brand is broken and may not be fixable.” Gerber’s comments reflect a growing sentiment among investors who are concerned about Musk’s focus on political endeavors rather than the core business of Tesla.
Protests against Musk have erupted globally, with demonstrations dubbed “Tesla Takedown” occurring at dealerships across the United States and Europe. Vandalism incidents have also been reported, prompting the Italian government to increase security measures at Tesla locations following a fire that destroyed 17 vehicles in Rome. The backlash has been so severe that Trump has suggested charging individuals who deface Tesla vehicles with “domestic terrorism.”
Despite the challenges, Tesla has attributed the sales drop to the transition to a new version of its most popular vehicle. However, analysts remain skeptical. Dan Ives, a prominent analyst at Wedbush, stated, “We are not going to look at these numbers with rose-colored glasses… they were a disaster on every metric.” He emphasized that Musk’s increasing political involvement is detrimental to the Tesla brand.
In a recent interview, Musk himself acknowledged the difficulties he faces in managing his businesses, admitting, “Frankly, I can’t believe I’m here doing this.” This admission raises questions about his ability to lead Tesla effectively while juggling his political commitments.
Tesla’s stock has suffered significantly, losing more than a quarter of its value since the beginning of the year. The company’s latest sales figures have prompted Randi Weingarten, president of the American Federation of Teachers, to urge public pension funds to scrutinize their Tesla holdings. Weingarten highlighted that Musk’s political activities appear to conflict with Tesla’s brand and business interests, further exacerbating the company’s challenges.
In a move that underscores the gravity of the situation, the comptroller for New York City has announced plans to sue Tesla on behalf of the city’s pension systems, citing losses exceeding $300 million in just three months due to the plummeting stock price. Comptroller Brad Lander stated, “Elon Musk is so distracted that he’s driving Tesla off a financial cliff.”
As Tesla prepares to release its full earnings report on April 22, the company has cautioned that the preliminary sales figures represent only a fraction of its overall performance. Investors and analysts will be closely watching for any signs of recovery or further decline in the coming months.
In conclusion, Tesla’s current predicament highlights the complex interplay between corporate leadership and political involvement. As the company navigates a challenging landscape, the future of Tesla and its brand reputation hangs in the balance, with many stakeholders eager to see how Musk’s actions will impact the electric vehicle market moving forward.
