Tesla sales drop 13% as Elon Musk’s political affiliations spark protest

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Tesla has reported deliveries of 336,700 electric vehicles in the first quarter of 2025, representing a 13 percent decline from the same period in the previous year.

This shortfall stands as Tesla’s weakest quarterly performance since 2022. Tesla has produced 345,454 Model 3/Y and delivered 323,800. Tesla has produced 17,161 Other Models and delivered 12,881 during January-March 2025. Tesla will post its financial results for the first quarter of 2025 after market close on Tuesday, April 22, 2025.

Several factors contribute to this decline:

Aging Vehicle Lineup: Tesla’s product offerings have stagnated, with no major releases since the 2023 Cybertruck. This has left the company vulnerable to competitors, particularly Chinese manufacturers like BYD, which surpassed Tesla in first-quarter deliveries.

CEO’s Political Involvement: Elon Musk’s political affiliations and advisory role to U.S. President Donald Trump have sparked global protests and damaged Tesla’s brand image. This backlash has been particularly pronounced in Europe, where sales have suffered significantly. ​

Increased Competition: The electric vehicle market is becoming increasingly crowded, with competitors offering more affordable and technologically advanced options. Tesla’s delay in introducing a mass-market vehicle under $30,000 has hindered its ability to compete effectively. ​

Tariff Implications: Recent announcements of tariffs on imports from key trading partners, including China and Taiwan, pose additional challenges. These tariffs could reduce U.S. auto sales by up to 3 million units, further pressuring Tesla’s operations.

The effect of these issues has led to a 45 percent drop in Tesla’s stock from its December peak, reflecting growing investor concern. Analysts warn that without strategic changes, including the introduction of new, affordable models and a reassessment of leadership’s public engagements, Tesla’s market position may continue to erode.

GreentechLead.com News Desk

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