Tesla's sales have dropped to their lowest in three years, with a 13% decrease from the previous year attributed to Elon Musk's controversial political involvement and escalating competition, prompting a nationwide backlash against the brand.
Tesla Faces Historic Sales Decline Amid Musk's Political Controversies
Tesla Faces Historic Sales Decline Amid Musk's Political Controversies
The electric vehicle giant experiences a significant downturn in sales, with experts attributing the drop to Elon Musk's recent political engagements and fierce competition.
Tesla's sales have unexpectedly fallen to a three-year low, igniting concerns within the electric vehicle sector as the company reported delivering approximately 337,000 electric cars during the first quarter of the year — a 13% decrease from last year. Following this revelation, Tesla's stock experienced a sharp decline.
The sales drop coincides with intensified competition from Chinese manufacturer BYD, yet many analysts believe that Elon Musk's political actions are significantly influencing consumer sentiment. Tesla executives attribute the downturn to a transition phase as the company prepares to roll out a new edition of its best-selling model.
Musk's controversial involvement in politics, particularly his leadership role in President Donald Trump's Department of Government Efficiency (DOGE), has sparked protests and boycotts worldwide. The Tesla head has invested heavily in various political campaigns, including a substantial contribution to Trump's election efforts and recent funding for a Wisconsin Supreme Court candidate who was subsequently defeated.
This backlash has manifested in "Tesla Takedown" protests at dealerships across the U.S. and Europe, with incidents of vehicle vandalism reported as well. Trump has suggested that acts of vandalism against Teslas could be treated as "domestic terrorism," further complicating matters for Musk.
Amid growing scrutiny, Musk himself expressed the difficulties of managing his various enterprises during a recent interview, indicating that he is grappling with the challenges more than ever before. With Tesla's share value plummeting by over one-third in the past year, the sentiment surrounding the brand remains bleak. Analyst Dan Ives characterized the recently released sales figures as a "disaster" and emphasized that Musk’s political engagements are detrimental to the brand’s image.
