Officers from Ottawa Police Service (OPS) are seen at a Tesla Service and Showroom centre after it was damaged with pink spray paint in Ottawa, on Monday, March 31, 2025. (Spencer Colby/The Canadian Press via AP)

- Tesla’s global sales fell 13% in Q1, despite deep discounts and incentives, signaling a growing struggle to attract buyers.
- Analysts cite Tesla’s aging lineup, fierce competition, and backlash against Elon Musk’s politics as key factors behind the sales slump.
- Tesla stock has dropped nearly 50% since December, as boycotts, protests, and uncertainty over future demand weigh on investors.
Share
Getting your Trinity Audio player ready...
|
NEW YORK — Tesla sales fell 13% in the first three months of the year, another sign that Elon Musk’s once high-flying electric car company is struggling to attract buyers.
The double-digit drop is likely due to a combination of factors, including its aging lineup, competition from rivals and a backlash from Musk’s embrace of right wing politics. It also is a warning that the company’s first-quarter earnings report later this month could disappoint investors.
Tesla reported deliveries of 336,681 globally in the January to March quarter. The figure was down from sales of 387,000 in the same period a year ago. The decline came despite deep discounts, zero financing and other incentives.
Analysts polled by FactSet expected much higher deliveries of 408,000.
Dan Ives of Wedbush said in a note to clients that Tesla is seeing soft demand in the United States and China, as well as facing pressure in Europe.
“The brand crisis issues are clearly having a negative impact on Tesla…there is no debate,” he said.
Ives said that Wall Street and analysts alike knew that the first-quarter figures were likely to be bad, but that it was even worse than expected.
“We are not going to look at these numbers with rose-colored glasses…they were a disaster on every metric,” he said.
Tesla Stock Drops Nearly Half Since Mid-December
Tesla’s stock has plunged by roughly half since hitting a mid-December record as expectations of a lighter regulatory touch and big profits with Donald Trump as president were replaced by fear that the boycott of Musk’s cars and other problems could hit the company hard.
Analysts are still not sure exactly how much the fall in sales is due to the protests or other factors. Electric car sales have been sluggish in general, and Tesla in particular is suffering as car buyers hold off from buying its bestselling Model Y because of plans for an updated version later this year.
Still, even bullish financial analysts who earlier downplayed the backlash to Musk’s polarizing political stances are acknowledging that it is hurting the company, something that Musk also recently acknowledged.
“This is a very expensive job,” said the Tesla CEO at a Wisconsin rally on Sunday, referring to his role as head of the Trump administration’s team charged with cutting government jobs and spending. “My Tesla stock and the stock of everyone who holds Tesla has gone roughly in half.”
Shares of Tesla Fell 3% Wednesday
Tesla cars have been smashed and set on fire in recent weeks, and protests have been staged at hundreds of Tesla dealerships. Owners have put bumper stickers on their cars saying, “I bought this before Elon went crazy.”
Europeans have also balked at buying Tesla, especially Germans upset after Musk publicly supported a far-right party in national elections and gave what many say was a Nazi-like salute at a Trump inauguration rally in January.
The protests come as the Austin, Texas electric vehicle maker faces fierce competition from other EV makers offering vastly improved models, including those of BYD. The Chinese EV giant unveiled in March a technology that allows it cars to charge up in just five minutes.
RELATED TOPICS:
Fresno Firefighters Save Dog From Canal and Now She’s Ready for Adoption
14 hours ago
Big Brands Spend Just Enough on X to Avoid Musk’s ‘Naughty List’
14 hours ago
Judge Dismisses Corruption Case Against New York City Mayor Eric Adams
14 hours ago
Why Project Labor Agreements Are Good for Our Schools and Students: Opinion
16 hours ago
Western US Sees Sharp Increase in Extreme Weather Impact
16 hours ago
Amazon Said to Make a Bid to Buy TikTok in the US
16 hours ago
Fresno Man Found Dead, Coroner’s Office Seeks Help Finding Family
16 hours ago
Senate Rebukes Trump’s Tariffs as Some Republicans Vote to Halt Taxes on Canadian Imports
9 hours ago
Categories

Senate Rebukes Trump’s Tariffs as Some Republicans Vote to Halt Taxes on Canadian Imports

Supreme Court Sides With the FDA in Its Dispute Over Sweet-Flavored Vaping Products

Trump Announces Sweeping New Tariffs to Promote US Manufacturing, Risking Inflation and Trade Wars

Fresno Firefighters Save Dog From Canal and Now She’s Ready for Adoption

Big Brands Spend Just Enough on X to Avoid Musk’s ‘Naughty List’
