Tesla reported its biggest sales decline in the company's history for the first three months of 2025. Deliveries fell 50,000 vehicles to 336,681 vehicles, down 13% from the same period last year.
Tesla reported its biggest sales decline in the company's history for the first three months of 2025. Deliveries fell 50,000 vehicles to 336,681 vehicles, down 13% from the same period last year.
Most analysts expected a significant drop in sales, partly because the figures from Europe were not very good, and also because Tesla temporarily closed some factories to upgrade production lines for the new Model Y. There is an optimistic view that some buyers held off on their purchases while they waited for the new version of their most popular car to become available, writes Gizmodo.
It's hard to ignore the broader challenges Tesla faces, namely: the politicization of the brand under Elon Musk and intense competition from Chinese rivals.
Polls in recent months have shown that most Americans dislike Musk’s policies. Traditional electric car buyers, environmentally conscious liberals, are put off by his commitment to President Trump. And while conservatives may appreciate his strong Republican support, they can make their case by buying a big pickup truck. They don’t have to buy an electric car to do so.
On the competitive front, China’s BYD is once again outselling Tesla, selling 416,000 electric vehicles in the first quarter. The company is offering affordable cars with impressive performance, including high-speed charging and free autonomous driving features, all while opening factories around the world. Meanwhile, Tesla’s lineup is aging — which isn’t good in a market like China, where buyers are demanding novelty.
Tesla was a leader in electric vehicles, but its success has all but evaporated while its CEO has become distracted by politics and tarnished the brand. Musk is more deeply involved in politics than any other CEO in recent memory, and it's clear there's a reason other company leaders shun him.
It's now clearer than ever that Tesla is no longer the special company it once was.
Recall that Elon Musk topped the Forbes billionaires list , and his fortune reached a record high thanks to the growth in the value of xAI, SpaceX and the high performance of Tesla shares over the past year. And here the key point is over the past year. It seems that this year did not start very well for the billionaire.
For example, Ross Gerber, who is one of the first investors in Tesla, believes that Elon Musk's political activities and his statements on X (Twitter) are harming the company and he needs to step down as CEO.
US President Donald Trump recently announced that the Department of Government Efficiency (DOGE) will be shut down. And Elon Musk, who currently heads DOGE, may have to return to running his companies full-time.
