Tesla Records Worst Sales in Two Years Amid Elon Musk’s Political Decisions
Tesla has reported its worst sales performance in over two years for the first quarter of 2025, with 336,681 deliveries, significantly lower than the 495,570 and 386,810 deliveries in previous periods.
The sales decline is attributed to Elon Musk’s political involvement and the actions of the DOGE organization. Tesla produced 362,615 vehicles, which is also lower compared to previous periods. This drop in production is linked to changes in the production line for the new Model Y.
Sales in Europe and China have decreased further. In Europe, sales dropped by 49% in the first two months of 2024, with a particularly steep decline of 76% in Germany. In China, Tesla's sales fell by 11.5%. This decline is due to increasing competition from local players like BYD and Geely.
To boost sales, Tesla plans to introduce an upgraded version of the Model Y and more affordable models. Despite this, Tesla’s stock has fallen to its lowest level since 2022, raising concerns about the company’s future on Wall Street.
Wedbush analyst Dan Ives has urged Musk to focus more on business rather than politics, warning that without this shift, Tesla could face "darker times." However, Tesla remains optimistic about advancements in autonomous driving technology and plans to launch a robotaxi service in Austin this summer.
