Tesla’s sales have hit a three-year low, following a backlash against CEO Elon Musk.
The electric car maker delivered just under 337,000 vehicles in the first quarter of 2025, a 13% drop compared to the same period last year.
Tesla’s stock fell sharply in early trading on Wednesday, after the disappointing sales figures were made public.
While competition from the Chinese company BYD is intensifying, experts suggest Musk’s controversial political role, particularly his involvement in the Trump administration, might also be contributing to the downturn.
Tesla has attributed the sales decline to the shift to a new version of its best-selling vehicle. However, some analysts are placing the blame squarely on Musk.
“These numbers are terrible,” said Tesla shareholder Ross Gerber, from Gerber Kawasaki Wealth and Investment Management, on X. “The brand is broken, and it may not be fixable,” he added. Gerber, who has previously called for Musk’s removal as CEO, was blunt in his assessment.
Political Backlash Musk’s outspoken and polarizing political views have sparked protests and boycotts worldwide. His leadership role in President Donald Trump’s Department of Government Efficiency (DOGE), focused on reducing federal spending and cutting the government workforce, has fueled much of the controversy.
A recent Politico report revealed that Trump has told his inner circle that Musk is expected to step back from the administration in the coming weeks. Following the news, Tesla's share price turned positive.
Musk, the world’s richest person, contributed over a quarter of a billion dollars to Trump’s election campaign in 2020. More recently, Musk poured millions into a Wisconsin Supreme Court race, backing former Republican attorney general Brad Schimel, who was decisively defeated on Tuesday.
The backlash against Musk has fueled protests, including "Tesla Takedown" demonstrations at Tesla dealerships in the U.S. and Europe. Some Tesla vehicles have even been vandalized. Trump has stated that his administration would treat vandalism of Teslas as "domestic terrorism."
Questions About Leadership Musk’s leadership of Tesla and his other ventures has come under increasing scrutiny. In a recent interview, he admitted to struggling with managing his businesses, saying, “Frankly, I can’t believe I’m here doing this.”
Over the past year, Tesla shares have lost more than a third of their value.
“We can’t sugarcoat these numbers... they were a disaster across the board,” said Wedbush analyst Dan Ives in a note on Wednesday. “The more political Musk gets with DOGE, the more the brand suffers—there’s no debate about that.”
