Tesla’s stock plummeted 36% in the first quarter amid backlash over CEO Elon Musk’s political interventions, intensifying global competition, and a weakening EV market. Analysts expect Tesla’s car deliveries to fall to a one-year low when it reports its latest figures later today.
Tesla is set to release its first-quarter car delivery figures on Wednesday, with analysts predicting a sharp decline in sales due to CEO Elon Musk’s political controversies, a slowdown in the electric vehicle (EV) market, and growing competition.
Tesla’s share price fell 36% in the first quarter, erasing approximately $460 billion in market value and wiping out all gains since the US election day. Speaking at a town hall event in Wisconsin, Musk remarked, “It’s costing me a lot to be in this job,” referring to his government position as the head of the Department of Government Efficiency (DOGE). On Monday, US President Donald Trump suggested that Musk’s tenure in government may soon end, as he is expected to return to running his companies full-time.
Tesla’s car sales get backlash from Musk’s political intervention
Tesla’s sales appear to have suffered from Musk’s political involvement both domestically and internationally.
Sales in Europe saw a sharp decline following Musk’s endorsement of Germany’s far-right party, Alternative for Germany (AfD). According to the European Automobile Manufacturers’ Association (ACEA), Tesla sold 19,046 cars in Europe during the first two months of the year, a 49% drop from the same period last year. In contrast, overall EV sales in the European Union grew by 28.4%, with EVs accounting for a 15.2% market share.
Growing competition from Chinese rivals
Tesla is facing increasing competition from Chinese car manufacturers, particularly BYD, which has been eroding its market share.
BYD reported an annual revenue of 777 billion yuan (€99 billion) in 2024, a 29% year-on-year increase, surpassing Tesla’s revenue of just over €90 billion. The Chinese automaker sold 1.76 million EVs last year, compared to Tesla’s 1.79 million. However, BYD’s hybrid vehicle sales reached 4.3 million globally, significantly outpacing Tesla’s pure EV sales.
Last month, BYD unveiled its new Super e-Platform technology, which allows EV batteries to charge in just five minutes for a driving range of 400 kilometres. The company also announced a partnership with DeepSeek to advance its autonomous driving technology. The news unsettled Tesla investors, triggering a sharp selloff in its shares. BYD’s stock has surged 48% so far this year, while Tesla’s shares have plunged 31%.
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