Tesla delivered 13 percent fewer cars in the first quarter of this year, it has said, amid growing backlash to Elon Musk.
The company is facing a host of problems, including criticism of chief executive Musk’s role in President Donald Trump’s administration as well as increased competition and an aging lineup of electric vehicles.
He and the president have been inseparable in recent months. Musk and his son are often spotted in the Oval Office. Trump bought a shiny red Tesla from the world’s richest man during a pop-up showroom from the White House lawn. Even before the president returned to the White House, Musk was renting a cottage for $2,000-per-night near Mar-a-Lago.
For the first quarter of this year, the electric automaker said it delivered 336,681 vehicles in the first quarter, down from 386,810 units a year ago.
Analysts expected Tesla to report deliveries of about 372,410 vehicles for the January-March period, according to an average estimate of 15 analysts from Visible Alpha, who lowered their forecasts in the past 30 days.
CEO Elon Musk has pledged a return to growth after Tesla’s annual deliveries dipped last year, but waning demand for its aging lineup of electric vehicles and a backlash against his political stance could make that promise a hard one to keep.
As boss of the Department of Government Efficiency, Musk has been instrumental in firing thousands of federal workers and cutting humanitarian aid, sparking discontent among some customers. Protests have erupted at dealerships in the U.S. and Europe, Tesla vehicles are being vandalized, while some data indicates a rise in Tesla owners trading in their vehicles.
Last month, Attorney General Pam Bondi announced the Justice Department is bringing “severe” charges against three people accused of targeting the electric vehicle manufacturer with arson attacks. “Let this be a warning: if you join this wave of domestic terrorism against Tesla properties, the Department of Justice will put you behind bars,” she said in a statement.
Investors are waiting to see if refreshed models like the Model Y and incentives have helped counter weak demand and tough competition from Chinese rivals including BYD and European companies such as Volkswagen and BMW. Speaking at an all-hands meeting last month, Musk told to Tesla employees that the Model Y will be the “best-selling car on Earth again this year,” CNBC reported.
Tesla’s sales in key European markets fell again in March, with sales in France and Sweden dropping for a third straight month.
Tesla began offering the refreshed Model Y, featuring updated styling and enhanced interiors, in China late February and in the U.S. and Europe last month.
Data from auto industry associations and analyst estimates point to notable declines in Tesla sales during the first two months of the year in the U.S., Europe, and China.
Tesla has indicated plans to launch a lower-priced model based on its existing platform this year, but is yet to release specific details about the vehicle.
Its pricey Cybertruck pickup, launched in late 2023, has seen limited demand due to its polarizing trapezoidal design and quality concerns. Tesla recently recalled nearly all Cybertrucks to address a potential exterior panel issue.
While Tesla may see less pain from the new 25% tariffs on imported vehicles due to its US-based manufacturing, Musk has said cost implications are “significant.” Tesla has also warned about potential retaliatory tariffs in response to the levies.
Additional reporting by agencies
