Tesla sales plunge after Elon Musk backlash

Tesla sales have dropped to their lowest level in three years. This decline follows backlash against CEO Elon Musk.

In the first quarter of 2025, Tesla delivered nearly 337,000 electric vehicles. This is a 13% decrease compared to last year.

Tesla shares fell sharply in early trading after these disappointing sales figures were released. The company faces growing competition from Chinese firm BYD.

Experts believe Musk's controversial political role has also impacted sales. Tesla attributes the drop to transitioning to a new version of its most popular car.

Some analysts blame Musk directly for the decline. "These numbers suck," said Tesla shareholder Ross Gerber on X.

He added, "The brand is broken and may not be fixable." Gerber has previously called for Musk's removal as CEO.

Protests and boycotts have occurred worldwide due to Musk's political involvement. He leads President Trump's Department of Government Efficiency initiative, which aims to cut federal spending.

On Wednesday, Politico reported that Trump told his inner circle Musk would step back from this role soon. After this news broke, Tesla's share price rose slightly.

Musk is the world's richest man and contributed over $250 million to help Trump get elected in November. Recently, he invested millions in a Wisconsin Supreme Court race but supported a losing candidate.

The backlash against Musk includes "Tesla Takedown" protests at dealerships across the US and Europe. Some Tesla vehicles have been vandalized as well.

Trump stated his administration would charge those who deface Teslas with "domestic terrorism." Questions about Musk's leadership of his businesses are increasing.

In a recent interview, he admitted running his companies is challenging. He said, "Frankly, I can't believe I'm here doing this."

Over the past year, Tesla shares have lost more than one-third of their value. Analyst Dan Ives noted that these numbers were disastrous on every metric.

He added that as Musk becomes more political with DOGE, the brand suffers further damage—there is no debate about it.