Tesla’s sales have dropped to their lowest level in three years, following backlash against CEO Elon Musk. In the first quarter of 2025, the company delivered nearly 337,000 electric vehicles, marking a 13% decline compared to the previous year.
Tesla’s stock took a hit on Wednesday after the sales figures were released. Although the company attributed the drop to the transition to a new version of its popular car model, analysts point to Musk’s controversial political involvement, particularly his role in the Trump administration, as a contributing factor. Musk’s involvement in initiatives like the Department of Government Efficiency (DOGE) has sparked protests and boycotts against Tesla worldwide.
Some investors, including Ross Gerber of Gerber Kawasaki Wealth and Investment Management, have expressed frustration with the company’s performance, even suggesting that Musk should step down as CEO. “The brand is broken and may not be fixable,” Gerber tweeted. Tesla’s share price has lost over a quarter of its value this year, and analysts, like Dan Ives of Wedbush, have criticized Musk’s political activities for negatively affecting the brand’s image.
Musk’s businesses, including Tesla, have come under scrutiny, with some questioning his focus on politics rather than managing his companies. Recently, he admitted that running his enterprises has been challenging.
In addition, labor unions have expressed concern over Tesla’s declining performance, urging public pension funds to reconsider their Tesla investments. New York City’s comptroller even announced plans to sue the company for financial losses resulting from the drop in stock price.
Tesla is expected to release its full earnings report for the quarter on April 22, which will provide more details on the company’s performance.
