In brief
The electric vehicle giant delivered nearly 337,000 cars in Q1 2025, marking a three-year low.
Tesla has hit a sales snag after its CEO Elon Musk’s controversial involvement in politics has come under fire. During the first quarter of 2025, Tesla delivered around 337,000 electric vehicles—down 13% from the previous year and the lowest quarterly number in three years. The news sent Tesla’s stock price tumbling as analysts and investors expressed their concerns.While increased competition from Chinese automaker BYD has been tough, many believe that Musk's outspoken role in political matters, particularly through the Trump administration, is largely to blame. Early investor Ross Gerber shares a grim outlook, stating, "The brand is broken and may not be fixable." Protests, dubbed the "Tesla Takedown," have erupted worldwide against Musk's actions, with many Tesla dealerships being vandalized. Despite the backlash, Musk remains one of the wealthiest individuals, having financially supported Trump's campaigns. Reports suggested that Musk might step back from his political role soon, but the White House dismissed these claims. Analysts have noted that as Tesla's political entanglements grow, the company's brand suffers.As Tesla gears up for its earnings report on April 22, it acknowledged these dismal sales figures while attributing them partially to a transition in their vehicle models. Meanwhile, significant investors, including public pension funds, are reevaluating their stakes in the company as concerns grow over Musk's focus and its impact on Tesla's future.
