Tesla’s sales fell in the first quarter of the year, signaling further trouble for Elon Musk’s electric vehicle empire as it struggles to maintain buyer interest.
The 13% decline in global deliveries reflects a mix of challenges, including an ageing product lineup, intensifying competition, and a growing backlash tied to Musk’s political stance. The slump also raises concerns ahead of Tesla’s upcoming first-quarter earnings report, which may fall short of investor expectations.
Between January and March, Tesla delivered 336,681 vehicles worldwide—well below the 408,000 anticipated by analysts surveyed by FactSet, and down from 387,000 during the same period last year. The drop came despite aggressive price cuts, zero-interest financing, and other sales incentives.
Tesla’s stock has tumbled by around 50% since reaching a record high in mid-December, as earlier optimism over a potential Trump presidency—promising lighter regulation and stronger profits—has given way to concerns over mounting boycotts and broader challenges facing the company.
Analysts remain uncertain about the extent to which the sales decline is driven by political backlash versus other market dynamics. Overall demand for electric vehicles has been sluggish, and Tesla is feeling the impact more acutely, particularly as buyers delay purchases of the Model Y in anticipation of an updated version later this year.
The Austin-based EV maker has also been losing market share to improving rivals, including Chinese giant BYD, which unveiled new ultra-fast charging technology in March that can recharge vehicles in just minutes.
