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Tesla sees 13% drop in first-quarter sales amid backlash over Musk’s politics
April 2, 2025
19:23
Tesla reported a 13 percent decline in first-quarter auto sales on Wednesday, citing lower production due to factory upgrades and mounting criticism over CEO Elon Musk’s involvement with the Trump administration.
The electric vehicle giant delivered 336,681 cars in the quarter ending March 31, falling short of analyst expectations. The company attributed the shortfall to the “loss of several weeks of production” as it ramped up upgrades for its Model Y output.
Tesla shares initially fell more than six percent in early trading after the weaker-than-expected delivery numbers. However, the stock later partially rebounded.
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The disappointing sales divs have fueled concerns about Musk’s ongoing leadership at Tesla. The company has faced consumer boycotts and vandalism as Musk continues to play a key role in implementing thousands of job cuts across the U.S. federal government.
Dan Ives, a well-known technology analyst at Wedbush and longtime Tesla advocate, called the latest numbers “a disaster on every metric.”
“It’s a fork in the road moment,” Ives stated.
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“The more political he gets… the more the brand suffers; there is no debate. This quarter was an example of the damage Musk is causing Tesla.”
Ives, who has urged Musk to clarify how he is balancing his role at Tesla with his work for Trump, described the situation as “a brand tornado crisis moment” that Musk must navigate to steer Tesla through this “dark chapter.”
As of 1400 GMT, Tesla shares were down 2.2 percent.
This article Tesla sees 13% drop in first-quarter sales amid backlash over Musk’s politics appeared first on BreezyScroll.
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