Tesla Faces Lowest Sales in Three Years Amid Musk Controversy and Political Backlash
Tesla's Q1 sales plummet 13% as competition rises and backlash against CEO Elon Musk's political role intensifies, leading to significant stock volatility.
Stock Movers: Tesla, Newsmax, Roblox
Bloomberg
Summary
In Q1 2025, Tesla reported its lowest vehicle deliveries in three years, down 13% from last year. This decline has been attributed to growing competition and backlash against CEO Elon Musk's political involvement, particularly his work with the Trump administration. Analysts express deep concerns over Musk's focus on politics rather than Tesla's product strategy. Despite a recent rise in Tesla's shares following speculation that Musk may step back from political duties, many industry experts warn of potential long-term ramifications for the brand if the situation doesn't improve.
Sources (15)
- Tesla faces a credibility crisis as sales plunge, especially tied to backlash against Musk's political maneuvers and refusal to honor Cybertruck trade-ins, compounding customer dissatisfaction.
- Political influence from Musk has led to significant public relations challenges, as evidenced by aggressive protests and vandalism against Tesla, amplifying calls for accountability.
- Musk's financial contributions to political campaigns have backfired, leaving the company struggling with declining sales numbers and a damaged reputation.
AlterNet·2M· "…It seems the Tesla billionaire may have overstayed his welcome."
AlterNet·2M· "…Tesla's declining sales are a major topic on the Musk-owned X.com, formerly Twitter."
MEDIAite·2M· "…Compounding Tesla’s troubles is the growing fallout from the Cybertruck, which appears to be turning into a public relations and resale disaster."
FAQ
No FAQs available for this story.