Tesla's Sales Hit by Controversy and Competition

Tesla's first-quarter sales plummeted 13% due to backlash against CEO Elon Musk's political views and increasing competition from rival electric vehicle makers. With shrinking sales in Europe and China, protests against Tesla have surged. Analysts and investors anxiously await new models to counter the downturn.

Tesla, the leading electric vehicle manufacturer, witnessed a significant 13% decline in first-quarter sales, marking its weakest performance in nearly three years. The downturn is attributed to CEO Elon Musk's polarizing political stances and increased interest in newer models from competitors.

Analysts had predicted a tough quarter, but the results surpassed expectations in terms of underperformance, with sales dropping to 336,681 vehicles, well below the projected 372,410. This slump is evident in key markets like Europe and China, where Tesla has seen sustained declines amid rising consumer interest in electric vehicles.

Compounded by public discontent over Musk's advisory role to former President Trump and protests at Tesla dealerships, investors are now anticipating the impact of refreshed models like the Model Y on sales figures. The fierce competition from Chinese and European rivals, such as BYD and Volkswagen, has further added pressure on Tesla's market position.

(With inputs from agencies.)