Tesla's Sales Slump

In a shocking turn of events, Tesla's sales have plunged to their lowest levels in three years, following intense backlash against its CEO, Elon Musk. According to recent reports, the electric vehicle pioneer delivered around 337,000 cars in the first quarter of 2025, marking a staggering 13% decline compared to the same period last year.

Market Reaction

The stock market responded swiftly to the disappointing sales figures, with Tesla shares dropping significantly during early trading on Wednesday. While industry analysts point to rising competition, particularly from the Chinese electric car manufacturer BYD, many believe that Musk's polarizing political actions are also playing a crucial role in this downward spiral.

Official Statements

Official statements from the company attribute this drop to the transition period for a new version of its best-selling vehicle. However, discontent among shareholders is palpable. Ross Gerber, a prominent investor and CEO of Gerber Kawasaki Wealth and Investment Management, voiced his frustrations on social media, stating, “These numbers suck. The brand is broken and may not be fixable.” He has previously suggested that the Tesla board should consider replacing Musk as CEO.

Activist Movements

The turmoil surrounding Musk includes ongoing protests and boycotts organized by activists disillusioned with his political engagements, particularly his involvement in Donald Trump’s administration. Most recently, he led the Department of Government Efficiency (DOGE), a controversial initiative aimed at cutting federal spending while slashing the workforce.

Musk's Government Role

Just recently, reports surfaced indicating that Musk might step back from his governmental role, which sparked a brief rally in Tesla’s stock price. Despite his standing as the world's richest man and a significant financial supporter of Trump's campaign, Musk has faced backlash, especially following substantial financial losses in political endeavors such as his backing of a losing candidate in a Wisconsin Supreme Court race.

Protests Erupting

Activist movements dubbed the 'Tesla Takedown' are gaining traction, with protests erupting outside Tesla dealerships in both the United States and Europe. Some Tesla cars have reportedly been vandalized in response to Musk's political stances, drawing criticism from critics and even remarks from Trump, warning that such actions could result in severe penalties.

Musk's Leadership Under Scrutiny

In light of these events, Musk’s capacity to lead his ventures has come under scrutiny. In a candid interview, he reflected on the challenges he faces, admitting, “I’m running these enterprises with great difficulty.”

Analysts' Concerns

The numbers paint a bleak picture for the company, with Tesla shares plummeting over a third in value over the last year. As Wedbush analyst Dan Ives commented, “We are not going to look at these numbers with rose-colored glasses... they were a disaster on every metric.” He further emphasized that Musk's increasing political involvement is detrimental to the brand's reputation.

Future Outlook

As Tesla navigates this tumultuous period, the question remains: can the company recover from this backlash, or is the iconic electric vehicle manufacturer facing a long-term decline?