Tesla’s sales have taken a hit, and the numbers are not looking pretty. The electric car giant sold just under 337,000 vehicles in the first three months of 2025, marking a 13% drop from the same time last year.
📉 Shares Take a Dive
Following the release of these disappointing sales figures, Tesla’s shares took a tumble in early trading on Wednesday. It seems the backlash against CEO Elon Musk is having a significant impact on the company.
🏎️ Competition Heats Up
Tesla is facing fierce competition from Chinese company BYD, which has been gaining ground. But while competition is tough, Musk’s controversial political ties, especially with the Trump administration, seem to be contributing to the sales slump.
🔥 Blaming Musk for the Dip
Tesla has tried to pin the sales drop on the transition to a new version of its popular model, but analysts aren’t buying it. Many are pointing the finger directly at Musk’s leadership.
💬 Early Investor Slams Musk
One early investor, Ross Gerber of Gerber Kawasaki Wealth and Investment Management, didn’t hold back on social media. He wrote: “These numbers suck. The brand is broken and may not be fixable.” Gerber, who once supported Musk, has now called for the board to remove him as CEO.
🌍 Global Protests and Boycotts
Around the world, protests and boycotts are growing, sparked by Musk’s involvement in politics. As head of President Trump’s Department of Government Efficiency (DOGE), Musk has been involved in cutting federal spending and reducing the government workforce. This has further alienated some Tesla customers.
🏛️ Musk to Step Back?
In a twist, Politico reported on Wednesday that Musk may be stepping back from his role in Trump’s administration in the coming weeks. Under US law, Musk can only serve 130 days in the administration this year, which means his exit could be imminent—around June.
💰 Musk’s Political Contribution
It’s also worth noting that Musk, the world’s richest man, contributed more than a quarter of a billion dollars to help Trump’s election campaign in November. His political involvement has been a significant part of the backlash.
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