Elon Musk Faces Backlash as Tesla Sales Plummet to Lowest Level in Three Years

Tesla has reported a dramatic decline in vehicle sales during the first quarter, reaching their lowest point in nearly three years. Sales figures reveal a decline of 13%, dropping to 336,681 vehicles from 386,810 a year ago. This downturn has raised concerns as it marks the lowest sales recorded since the second quarter of 2022.

Analysts had expected Tesla to deliver around 372,410 vehicles, but the actual figures fell short of these projections. Musk had previously assured investors that the company would recover after facing its first annual decrease in deliveries in 2024.

The company is currently grappling with consumer backlash related to Musk’s political affiliations. His interactions with hard-right parties in Germany and other nations, combined with his role as an adviser to former President Trump, have alienated some customers. Protests against Musk and Tesla have been notable, with demonstrations occurring at multiple dealerships worldwide.

Sales in key European markets, including France and Sweden, have also suffered. The decline in China has been particularly evident, despite an overall growth trend for electric vehicles in the region. Current production challenges have impacted Tesla’s performance as factories undergo retooling for the upcoming redesigned Model Y electric vehicle.

As the company navigates these hurdles, Tesla’s stock has faced volatility. Following the release of the disappointing sales figures, shares dropped by 2% but later saw a rebound after news surfaced that Musk would be stepping back from his advisory role with Trump.

With increasing competition from brands like BYD and other Chinese EV manufacturers, Tesla’s market position faces significant pressure. Market analysts describe the recent delivery numbers as disastrous for the company’s bullish investors, highlighting an urgent need for Tesla to address its branding issues.