Tesla Sees Decline in U.S. Sales Amidst Speculation of Musk's Departure from Administration
Electric vehicle manufacturer reports a 13% drop in deliveries during the first quarter of 2025, with stock prices fluctuating based on rumors involving Elon Musk.
Tesla, the electric vehicle manufacturer founded by Elon Musk, experienced a challenging start to 2025, as sales in the United States fell by 13% in the first quarter compared to the same period last year.
The company delivered 336,681 vehicles in the first quarter, down from 386,810 in the previous year and below analysts' expectations of approximately 372,410 vehicles, according to estimates by analysts from Visible Alpha.
The decline in sales coincided with a challenging market environment, including new tariffs announced by the White House, which contributed to a more than 5% drop in Tesla’s stock value at the start of trading on Wall Street.
Several factors are contributing to the decrease in Tesla's sales.
Firstly, Musk's strong support for former President Donald Trump during his presidential campaign, coupled with his involvement in the administration as head of the Office of Management and Budget, has reportedly affected public perception of the brand.
This has been evidenced by protests occurring at Tesla stores in the United States and Europe, and reports of vandalism targeting Tesla vehicles, including an investigation launched in Italy following a fire incident in Rome.
Additionally, there is an observable trend of increasing numbers of Tesla owners trading in their vehicles, indicating a potential shift in consumer sentiment.
The competitive landscape for electric vehicles has also intensified, particularly from Chinese automaker BYD, which is projected to surpass Tesla in global electric vehicle market share this year.
According to Counterpoint Research, BYD is expected to capture 15.7% of the market compared to Tesla's projected 15.3% market share.
Furthermore, industry analysts have indicated that the aging model lineup may be contributing to the decreased sales.
Investors are closely monitoring the introduction of refreshed models such as the Model Y, along with new incentives that may help bolster demand amid stiff competition from rivals including BYD, as well as European manufacturers like Volkswagen and BMW.
The company delivered 336,681 vehicles in the first quarter, down from 386,810 in the previous year and below analysts' expectations of approximately 372,410 vehicles, according to estimates by analysts from Visible Alpha.
The decline in sales coincided with a challenging market environment, including new tariffs announced by the White House, which contributed to a more than 5% drop in Tesla’s stock value at the start of trading on Wall Street.
Several factors are contributing to the decrease in Tesla's sales.
Firstly, Musk's strong support for former President Donald Trump during his presidential campaign, coupled with his involvement in the administration as head of the Office of Management and Budget, has reportedly affected public perception of the brand.
This has been evidenced by protests occurring at Tesla stores in the United States and Europe, and reports of vandalism targeting Tesla vehicles, including an investigation launched in Italy following a fire incident in Rome.
Additionally, there is an observable trend of increasing numbers of Tesla owners trading in their vehicles, indicating a potential shift in consumer sentiment.
The competitive landscape for electric vehicles has also intensified, particularly from Chinese automaker BYD, which is projected to surpass Tesla in global electric vehicle market share this year.
According to Counterpoint Research, BYD is expected to capture 15.7% of the market compared to Tesla's projected 15.3% market share.
Furthermore, industry analysts have indicated that the aging model lineup may be contributing to the decreased sales.
Investors are closely monitoring the introduction of refreshed models such as the Model Y, along with new incentives that may help bolster demand amid stiff competition from rivals including BYD, as well as European manufacturers like Volkswagen and BMW.
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