Tesla Sales Drop 13%, Musk Expected to Step Back from Government Role

Tesla reported a significant 13% drop in vehicle deliveries for Q1 2025, marking its worst quarterly performance since 2022, largely attributed to rising competition and CEO Elon Musk's controversial political involvement. The decline comes as competitors like Ford and Hyundai see increased sales, with the Ford Mustang Mach-E and Hyundai IONIQ 5 reporting significant year-over-year gains. The situation has raised concerns among investors, leading to a temporary drop in Tesla's stock, which later rebounded following reports that Musk may step back from his advisory role to President Trump. Analysts suggest that Musk's dual focus on government duties and Tesla may be affecting the brand's performance and public perception. As Musk reportedly prepares to refocus on his business ventures, Tesla's future performance hinges on upcoming deliveries and product launches, including new models and the anticipated robotaxi service. The market remains cautiously optimistic, with some viewing Musk's potential exit from government as a positive shift for Tesla's leadership.