Tesla’s global sales have plummeted 13% in the first quarter, marking the company’s worst drop in 13 years. This decline is a significant blow to Elon Musk’s electric vehicle giant, which has been struggling to maintain its market dominance.
The disappointing sales figures are attributed to a combination of factors, including Tesla’s aging lineup, growing competition from rival automakers, and a backlash against Musk’s embrace of right-wing politics ². Despite aggressive price cuts and promotional incentives, Tesla’s sales have continued to slump.
Tesla reported deliveries of 336,681 vehicles globally in the first quarter, down from 387,000 in the same period last year ¹. Analysts had projected sales of around 408,000, making the shortfall even more pronounced.
The decline in sales has sparked concerns about Tesla’s future performance and has led to a sharp drop in the company’s stock price. Tesla’s stock has plunged by roughly half since hitting a mid-December record.
Musk’s leadership and his role in the Trump administration have faced growing criticism, with some analysts warning that the backlash could hit the company hard ⁴. As one analyst noted, “The company’s struggles are reflected in the stock market as well, with Tesla shares slipping nearly 6% in early trading on Wednesday following the release of its delivery figures.”