Tesla Sales Suffer After Controversial Actions by Elon Musk

Sun Jul 06 2025 16:08:38 GMT+0300 (Eastern European Summer Time)
Tesla Sales Suffer After Controversial Actions by Elon Musk

Recent backlash against Elon Musk leads to unexpected drop in Tesla vehicle sales, prompting stock decline.


Tesla's sales figures have plummeted significantly amidst ongoing controversies surrounding CEO Elon Musk's political engagements, hinting at a challenging road ahead for the electric car company.



Tesla's sales numbers have shocked investors, revealing a drop to their lowest level in three years. In the first quarter of this year, the electric vehicle manufacturer reported nearly 337,000 vehicle deliveries, marking a staggering 13% decline from the previous year. This unexpected downturn led to a sharp decline in Tesla's stock prices, reflecting investor concerns.

The electric car market has faced intensified competition, particularly from the Chinese company BYD, but analysts suggest that Musk's controversial involvement with the Trump administration has significantly impacted consumer perceptions. The company has pointed to the rollout of an updated model of its best-selling vehicle as a contributing factor to the sales decline.

However, the backlash against Musk has grown more pronounced, with demonstrations and calls for boycotts emerging globally due to his controversial political stances. Musk has been at the forefront of President Trump's Department of Government Efficiency (DOGE), which aims to streamline federal spending and reduce the government workforce. His political contributions have further fueled these tensions, as he provided substantial funds to support Trump's 2016 campaign.

In recent weeks, Musk has also been financially backing a Republican candidate in a critical Wisconsin Supreme Court race, which ended in defeat, leading to increased scrutiny of his political interests. This has sparked "Tesla Takedown" protests at company showrooms throughout the United States and Europe, with some Tesla vehicles facing vandalism as tensions rise.

Critics, including fellow investors, have questioned Musk's ability to manage Tesla amidst these challenges. In a candid interview, Musk expressed the difficulties he faces in leading his varied business ventures. Following the release of the disappointing sales data, analyst Dan Ives from Wedbush stated, "We are not going to look at these numbers with rose-colored glasses... they were a disaster on every metric." He underscored a concern that Musk's growing political engagement is detrimental to the Tesla brand, stating, "The more political [Musk] gets with DOGE, the more the brand suffers, there is no debate."

In the past year, Tesla shares have plummeted by over a third, marking a turbulent period for one of the leading companies in the electric vehicle market. As the situation continues to unfold, both the company and its investors will be watching closely for signs of recovery or further decline.

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