The company announced on Wednesday that its global sales in the first quarter dropped by 13% compared to last year: nearly 337,000 cars were delivered in the quarter, down from 387,000 in the first three months of 2024. This is a real collapse, occurring despite deep discounts, zero-interest financing, and other incentives, likely due to a combination of factors, including aging models and increasing competition from rivals in Europe and China.
However, the sales collapse mainly reflects consumer backlash against the role of Elon Musk, Tesla’s CEO: a cutter of federal jobs under the Trump administration in the United States and a supporter of far-right parties in Europe, while electric vehicle buyers in most countries tend to lean politically left. The brand, once a symbol of electric mobility and until just a few months ago an image of innovation, development, and environmental awareness (at least as it presented itself), has become a source of embarrassment for owners who are ashamed to support a company they see as betraying its commitment to making personal transportation better for the planet. They also believe its CEO has abandoned the principles of democracy.
Both in the United States and in many European countries, protests have taken place in front of Tesla stores, and Tesla vehicles themselves are often vandalized, becoming a focal point for anger against Musk. The 13% drop in sales is also a warning that the company’s first-quarter earnings—scheduled to be reported at the end of the month—could be very disappointing for investors. Tesla’s stock price, already down more than 40% from its December highs, fell by nearly 5% in early trading on Wednesday.
Meanwhile, Chinese automaker BYD is poised to overtake Tesla as the world’s top electric vehicle seller for the first time this year, with a market share of 15.7% compared to Tesla’s 15.3%. Against this backdrop, Donald Trump’s words sound less surprising: when asked about Musk, he said yesterday that the entrepreneur, overwhelmed by his business responsibilities, could soon return to his affairs and leave the White House. Whether Musk will also abandon his support for the far right and forget about Nazi salutes remains to be seen.
