In a surprise to stock watchers, Tesla sales have experienced a significant decline. There were hints of this development in 2024 when Tesla first reported its annual drop in sales. However, with only three months of the year so far, the situation has worsened.
Tesla shares have plunged by 13%, the largest drop in the company’s history. About 336,681 cars were delivered during the first quarter, 50,000 fewer than in the same period last year. This marks the company’s worst sales performance in three years.
This decline may be due to protests against Tesla, opposing Elon Musk’s actions as the head of DOGE. These actions include staff reductions in federal agencies and aggressive cost-cutting measures promoted by Musk. Many protesters have gathered at Tesla showrooms worldwide in response to Musk’s controversial political statements. Others are becoming alienated, fearing that Tesla products will turn into political statements rather than vehicles.
In addition, Tesla’s market share for electric vehicles has faced increased competition. China is the largest market for electric vehicles, and BYD has overtaken Tesla as the world’s top seller.
In summary, sales in Europe have also declined by 49% in the first two quarters of the year. Musk’s vocal alliance with far-right political parties, such as Germany’s Alternative für Deutschland (AfD), is one concerning factor.
Whatever the cause, if Elon doesn’t find a way to mend these losses, he could seriously damage his company if he’s not careful with his political activities.
