Tesla reported a 13% decline in deliveries for the first quarter on Wednesday, reflecting a trend of diminishing demand for electric vehicles (EVs) along with growing scrutiny of CEO Elon Musk’s political activities involving the Trump administration.
The automotive company delivered a total of 336,681 vehicles during the quarter, down from 386,810 units a year prior. Analysts had anticipated a delivery figure of approximately 372,410 vehicles, based on average estimates from 15 financial analysts associated with Visible Alpha.
Tesla’s declining sales suggest that the brand is facing challenges due to a lack of significant updates to its vehicle offerings over the past few years. Moreover, concerns have arisen regarding Musk’s involvement with President Donald Trump and his endorsement of similar political initiatives globally.
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Tesla dealerships in both the U.S. and Europe have witnessed protests and instances of vandalism affecting Tesla vehicles. FBI Director Kash Patel noted on X that these attacks on Tesla owners are being classified as “domestic terrorism.”
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 233.29 | -6.14 | -2.56% |
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Counterpoint Research suggests that Tesla’s leadership in the global electric vehicle market is at risk of being overtaken by China’s BYD, which is predicted to capture a 15.7% share of global EV sales, outpacing Tesla’s 15.3% for the first time.
March saw decreases in sales across critical European markets, with both France and Sweden experiencing declines for the third consecutive month.
While Tesla has announced intentions to introduce a more affordable model based on its existing platform this year, detailed specifications for the vehicle have yet to be made public.
Demand for the recently launched Tesla Cybertruck has been tepid, attributed largely to its divisive design and concerns regarding quality following several recalls.
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According to Dan Ives, an analyst at Wedbush Securities, this period represents a critical juncture for Musk. He noted, “The more political he becomes with DOGE, the more the brand suffers; there is no debate.”
“This is a moment of truth for Musk as he navigates this brand crisis and strives to emerge successfully from this challenging chapter for Tesla,” Ives added.
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Ives emphasized that Musk must ease the political turmoil and find a way to balance his role as CEO of Tesla with his interests in DOGE. While he remains optimistic about Tesla’s long-term prospects, he warned that “Musk needs to get his act together or darker times may await Tesla.”
By late Wednesday morning, Tesla stock had fallen approximately 1.5%, having recovered from an even greater initial decline earlier in the day.
Reuters contributed to this report.
