Tesla’s Electric Dreams Hit a Speed Bump: Sales Drop 13 Percent Amid Elon Musk Backlash

Tesla, the electric car giant, is facing some tough times. In the first three months of 2025, the company delivered 13% fewer vehicles compared to the same time last year. Why? Many are pointing fingers at CEO Elon Musk and his controversial political moves. Here’s what’s happening with Tesla and why it’s got everyone talking.

A Big Drop in Deliveries

Tesla handed over 336,681 cars to customers in the first quarter of 2025, down from 386,810 the year before. For a company that’s all about growth, this dip is a big deal. Since deliveries are a good hint at how many cars Tesla is actually selling, this drop has set off alarm bells. Wedbush Securities analyst Dan Ives didn’t mince words: “This delivery number was a disaster for the bulls with continuous negativity around the TSLA brand.” He added, “We are not going to look at these numbers with rose-colored glasses… they were a disaster on every metric.”

Why the Slump?

So, what’s behind this stumble? It seems Tesla’s shiny reputation is taking a hit, and Elon Musk’s new gig might be to blame. On top of running Tesla, Musk is leading the Department of Government Efficiency (nicknamed DOGE) in the Trump administration—a role that’s earned him plenty of headlines, not all of them flattering. Some customers aren’t happy with Musk’s political spotlight, and it’s showing in Tesla’s sales. Even with tempting offers like 0% financing, the company couldn’t stop the slide in big markets like Europe, California, and China.

Musk’s Political Play: A Risky Move?

Analysts say Musk’s outspoken leadership style is starting to hurt Tesla’s image. Dan Ives put it bluntly: “The time has come for Musk....it’s a fork in the road moment. The more political he gets with DOGE the more the brand suffers, there is no debate.” He went further, saying, “This quarter was an example of the damage Musk is causing Tesla.” For a company that’s long relied on its cool factor and loyal fans, this backlash is a warning sign.

A Glimmer of Hope?

It’s not all doom and gloom, though. Tesla has a trick up its sleeve: a new, cheaper model set to roll out later this year. If it hits the mark, it could give sales a much-needed boost. For now, though, the company’s stock took a tumble, dropping 6.1% to $252.14 right after the news broke.

What’s Next for Tesla?

Tesla’s facing a bumpy road ahead. With Musk juggling his CEO duties and a high-profile political role, the question is whether he can steer the company back to smooth sailing—or if this is just the start of a bigger skid. For Tesla fans and investors, all eyes are on what happens next.