Tesla Reports 13% Drop in Q1 Sales Amid Musk Controversy

Tesla experienced a significant 13% decrease in vehicle sales in Q1 2025, selling 336,681 units, which fell short of analyst expectations and marked the lowest quarterly deliveries since 2022. This decline is attributed to multiple factors, including production losses during factory upgrades, rising competition, and backlash against CEO Elon Musk's political involvement with the Trump administration. Analysts, including Dan Ives from Wedbush, described the results as a 'disaster on every metric' and emphasized the negative impact of Musk's political activities on the Tesla brand. Despite aggressive promotional efforts, such as discounts and zero-interest financing, consumer resistance remains high, with ongoing protests and vandalism directed at Tesla properties. The company's stock saw volatility, initially dropping over six percent before partially rebounding following reports that Trump may reduce Musk's political role. The situation presents a critical challenge for Musk as he navigates the intersection of his political commitments and Tesla's market performance.