Tesla Sales Dwindle Amid Elon Musk Controversy

Tesla's recent sales figures indicate a significant downturn, as the fallout from Musk's political engagements has begun to affect the company adversely.

Tesla is grappling with its lowest sales figures in three years, attributing the sharp 13% decline in electric vehicle deliveries to nearly 337,000 units in the first quarter of 2025 to external factors, particularly CEO Elon Musk's controversial political involvements. The announcement of these dismal numbers led to a marked drop in Tesla's stock value, signaling a wave of investor concern.

Experts have noted that competition from Chinese electric vehicle manufacturer BYD is intensifying, but they suggest that the backlash stemming from Musk's prominent role in Donald Trump's administration may be weighing heavily on consumer perception. Early Tesla investor Ross Gerber expressed disappointment over the sales report, declaring that "the brand is broken" and advocating for Musk's removal as CEO.

Public unrest has emerged globally, with protests and boycotts under the banner "Tesla Takedown" resulting in vandalism of vehicles and dealerships. Calls for accountability echo through the market as voters reconsider Musk's political actions, including his leadership of the Department of Government Efficiency (DOGE), focused on federal spending cuts. After a Politico report speculated on Musk's potential withdrawal from the Trump administration, shares momentarily recovered before the White House denied the story, referring to it as "garbage."

Musk, who has invested heavily in political campaigns, including a recently lost race in Wisconsin, faces scrutiny regarding the balance between his political engagement and business management. Analysts from Wedbush noted, "the more political [Musk] gets with DOGE, the more the brand suffers."

In a recent filing to the Securities and Exchange Commission, Tesla cautioned against interpreting quarterly sales as conclusive financial indicators. The full earnings report is expected on April 22, where the company aims to clarify results influenced by various operational factors.

Randi Weingarten, leader of the American Federation of Teachers, has reached out to public pension funds urging them to evaluate their Tesla investments amid falling shares, while New York City’s comptroller has announced plans to sue Tesla over losses attributed to the stock's decline.

Concerns grow around Musk's capability to steer Tesla effectively through a challenging landscape, with New York City's comptroller declaring that the CEO is on a reckless path towards jeopardizing the financial stability of the company and its investors.