Tesla's Tumultuous First Quarter: Sales Slump Amidst Political Backlash

Tesla's sales dropped 13% in Q1, amid backlash from CEO Elon Musk's political stance and increased competition from electric car manufacturers. European and Chinese sales declined, and political protests have escalated, affecting market share. Tesla plans a new model and incentives to combat weak demand.

Tesla's first-quarter sales experienced a 13% slump, marking the weakest performance in nearly three years as CEO Elon Musk's political affiliations drew backlash from consumers. The automaker's shares fell over 2% following a more significant-than-expected drop to 336,681 vehicle sales from January to March.

While the global demand for electric vehicles is on the rise, Tesla has seen a decline in sales across Europe and China, losing market share to local competitors. Musk's political ties have fueled protests and vandalism against Tesla's assets worldwide. The company's deliveries fell short of the 372,410 vehicles analysts anticipated.

Analysts, including Dan Ives from Wedbush Securities, described the sales figures as disastrous. With Musk's advisory role to Donald Trump igniting customer discontent, Tesla faces declining margins impacting revenue growth. As competitive pressures from companies like BYD and Volkswagen mount, Tesla looks toward refreshed models and incentives to revitalize demand.

(With inputs from agencies.)