Tesla's first-quarter deliveries fall amid slow demand, Musk controversy
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Tesla on Wednesday announced that its first-quarter deliveries dropped 13% amid slowing consumer demand for electric vehicles (EVs) and controversy surrounding CEO Elon Musk's political involvement in the Trump administration.
The automaker delivered 336,681 vehicles in the first quarter, a decline from 386,810 units a year ago. Expectations were for Tesla to deliver about 372,410 vehicles in the quarter, based on an average estimate of 15 analysts from Visible Alpha.
Tesla's sluggish sales show the company's brand is under pressure over a lack of updates to its vehicle lineup in recent years, as well as Musk's work with President Donald Trump and public support for similar political movements in other countries.
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Tesla sales came in nearly 40,000 vehicles below expectations. (David Paul Morris/Bloomberg via Getty Images / Getty Images)
Protests have erupted at Tesla dealerships in the U.S. and Europe as well as cases of vandalism of Tesla vehicles. FBI Director Kash Patel posted on X that the incidents of attacks on Tesla owners are being treated as "domestic terrorism."
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 269.89 | -12.87 | -4.55% |
Critics have also questioned Musk's focus on Tesla given the time he's spent leading the Trump administration's Department of Government Efficiency (DOGE) and campaigning for political candidates he favors.
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Tesla's lead as the top EV-maker in the world is on the verge of being supplanted by China's BYD, which is projected to achieve a 15.7% market share of global EV sales, topping Tesla's 15.3% for the first time, according to Counterpoint Research.
Sales in key European markets declined in March, with declines in France and Sweden continuing for a third consecutive month.
People participate in a "Tesla Takedown" protest against Elon Musk outside a Tesla dealership in Pasadena, California, on March 8. (Frederic J. Brown/AFP via Getty Images / Getty Images)
Tesla has suggested it plans to launch a lower-priced model based on its existing platform this year, but is yet to release specific details about the vehicle.
The Tesla Cybertruck, which launched in late 2023, has seen soft demand due to its polarizing trapezoidal design and concerns over quality following a series of recalls.
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Elon Musk has taken on a high-profile role leading the Trump administration's DOGE initiative. (Win McNamee/Getty Images / Getty Images)
Wedbush Securities analyst Dan Ives said in an investor note that this is a "fork in the road moment" for Musk as "the more political he gets with DOGE the more the brand suffers, there is no debate."
"This continues to be a moment of truth for Musk to navigate this brand tornado crisis moment and get onto the other side of this dark chapter for Tesla with much better days ahead," Ives wrote.
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"Musk needs to stop this political firestorm and balance being CEO of Tesla with DOGE," he said, adding that while the firm remains bullish on Tesla over the long-term, "Musk needs to get his act together or else unfortunately darker times are ahead for Tesla."
Tesla stock was down about 1.5% in late morning trading on Wednesday, after having opened with a steeper decline that it partially pared back.
Reuters contributed to this report.