Tesla’s car deliveries dropped by 13% in the first quarter of this year, as the company faces increasing backlash over CEO Elon Musk’s actions and political views.
In the first three months of 2025, Tesla delivered 336,681 vehicles, down from 386,810 during the same period last year. Analysts had expected Tesla to report about 372,410 deliveries, but the results fell short.
Musk, once hailed as the driving force behind Tesla’s success, is now facing criticism from many angles. His close ties to President Donald Trump have drawn attention, especially as the two have been seen together frequently. Musk and his son have been spotted in the Oval Office, and Trump bought a Tesla directly from Musk during a pop-up showroom on the White House lawn. Musk even rented a cottage near Mar-a-Lago for $2,000 a night before Trump returned to office.
Despite Musk’s promises of a comeback, Tesla’s problems are stacking up. Aging vehicle models and growing competition are taking a toll. Protests have broken out at Tesla dealerships in the U.S. and Europe, and some Tesla owners are now trading in their cars. Additionally, vandalism against Tesla vehicles has been reported.
Musk’s role in President Trump’s administration, particularly his involvement in firing thousands of federal workers and slashing humanitarian aid, has only fueled more resentment among customers. This anger is impacting Tesla’s brand, as some customers are distancing themselves due to Musk’s political stance.
Last month, Attorney General Pam Bondi announced that the Justice Department would bring severe charges against three individuals accused of arson attacks targeting Tesla properties. “Let this be a warning: if you join this wave of domestic terrorism against Tesla properties, the Department of Justice will put you behind bars,” she said.
Tesla is also facing tougher competition from Chinese electric vehicle maker BYD and European giants like Volkswagen and BMW. Despite efforts to refresh models like the Model Y, sales are still down in key European markets. In March, sales in France and Sweden fell for the third consecutive month.
Tesla’s new Model Y, which was updated with a new design and improved interiors, launched in China in late February and in the U.S. and Europe last month. However, Tesla’s sales in the first two months of the year showed a significant decline in the U.S., Europe, and China.
Tesla has announced plans to launch a lower-priced model this year, but details on this vehicle remain scarce. Meanwhile, the highly anticipated Cybertruck, which launched in late 2023, has faced limited demand due to its controversial design and quality issues. In fact, Tesla recently had to recall nearly all Cybertrucks to fix an exterior panel problem.
While Tesla may not be hit as hard by the new 25% tariffs on imported vehicles, thanks to its U.S.-based manufacturing, Musk has acknowledged that the cost impact is “significant.” Tesla has also warned of potential retaliatory tariffs in response to these new levies.
Tesla’s future depends on whether the company can overcome these challenges. The backlash against Musk’s actions, combined with increased competition and concerns over product quality, is making it harder for the electric vehicle giant to maintain its growth.
