Tesla has reported its worst sales figures in three years, with a
significant drop in vehicle deliveries. The electric car giant delivered nearly
337,000 vehicles in the first three months of 2025, marking a 13% decline
compared to the same period last year. The sharp drop has sent Tesla’s stock
plummeting, raising concerns among investors about the future of the company.
The decline in sales comes as Tesla faces stiff competition from Chinese
automaker BYD, which has been aggressively expanding its market presence.
However, many industry analysts believe the controversy surrounding Elon Musk’s
political involvement has played a major role in the downturn. Musk’s active
role in President Donald Trump’s administration has sparked criticism and
backlash, leading to widespread protests and boycotts against Tesla.
Musk, who has been leading Trump’s Department of Government Efficiency
initiative, has faced increasing scrutiny over his political affiliations.
Reports suggest that Trump has privately indicated Musk may soon step down from
his role in the administration. Following this report, Tesla’s stock showed
slight recovery, but uncertainty still looms over the company’s future.
Early Tesla investor Ross Gerber did not hold back in his criticism of the
company’s poor performance. In a post on X, he described the numbers as
disastrous, adding that the Tesla brand may be irreparably damaged. Gerber, who
was once a strong supporter of Musk, has recently called for his removal as
CEO, arguing that his political engagements are negatively impacting the
company’s reputation and sales.
The controversy surrounding Musk has led to organized demonstrations, with
Tesla dealerships becoming the target of global protests. The movement, dubbed
“Tesla Takedown,” has seen activists vandalizing vehicles and urging potential
buyers to boycott the brand. Trump, in response, has vowed to crack down on
these acts, labeling them as domestic terrorism.
Musk himself has admitted to struggling with the demands of his multiple
ventures. In a recent interview, he acknowledged that running his businesses
has become increasingly difficult, admitting that he is barely managing to keep
things afloat. His comments have further fueled speculation that his leadership
at Tesla may be faltering.
Tesla’s share value has suffered greatly in recent months, losing more than
25% of its worth since the beginning of the year. Wall Street analysts have not
minced words about the situation, with some describing the company’s financial
standing as alarming. According to industry experts, Musk’s deepening
involvement in politics is causing severe damage to Tesla’s brand and business
interests.
Tesla has attempted to downplay the impact of its latest sales report,
stating that the figures only provide a partial picture of the company’s
overall performance. The company cited the transition to a new version of its
best-selling vehicle as a contributing factor to the sales drop. However,
investors and market watchers remain skeptical about the explanation, given the
growing negative sentiment surrounding Musk’s leadership.
The full financial results for the quarter are set to be released on April
22, and analysts are bracing for more volatility. Tesla has emphasized that
several factors, including production costs and currency exchange rates, will
influence the final earnings report. Meanwhile, the company has confirmed that
production of its Model Y sport utility vehicle was temporarily halted earlier
this year, adding to the concerns about supply chain disruptions and declining
demand.
Investor confidence in Tesla has been shaken, with some major financial
institutions taking steps to reassess their stakes in the company. The
president of the American Federation of Teachers has urged pension funds to
review their Tesla holdings, warning that Musk’s focus on politics is diverting
attention away from Tesla’s core business. The comptroller of New York City has
also signaled plans to sue Tesla, citing massive losses suffered by the city’s
pension funds due to the company’s plummeting stock value.
As the fallout continues, Tesla finds itself at a critical juncture. The
company, once regarded as a leader in the electric vehicle industry, is now
facing mounting pressure to stabilize its operations and regain investor trust.
Whether Musk will step back from his political engagements to refocus on Tesla
remains an open question, but for now, the company’s future appears more
uncertain than ever.
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