Tesla’s first-quarter deliveries fell 13 per cent, hurt by backlash against CEO Elon Musk’s political stance, rising competition and its aging line up of electric vehicles, sending its shares down more than four per cent in premarket trading.
It delivered 336,681 vehicles in the first quarter, down from 386,810 units a year ago. Tesla was expected to report about 372,410 vehicles, according to an average estimate of 15 analysts from Visible Alpha.
The electric automaker’s stumbling sales indicate that the one-time leading brand is reeling from the fallout of the company not refreshing its vehicle lineup in years and Musk embracing hard-right politics.
China’s BYD is set to unseat Tesla as the top global EV seller for the first time this year with a 15.7 per cent market share, ahead of Tesla’s 15.3 per cent, according to Counterpoint Research.
Musk has pledged a return to growth after Tesla’s annual deliveries dipped last year, but his advisory role to U.S. President Donald Trump, through which he has been instrumental in firing thousands of federal workers and cutting humanitarian aid, has sparked discontent among some customers.
Protests at Tesla stores in the U.S. and Europe have spiked, and Tesla cars are being vandalized. Some data indicates a rise in Tesla owners trading in their vehicles.
Meanwhile, investors are waiting to see if refreshed models like the Model Y and incentives have helped counter weak demand and tough race from Chinese rivals including BYD and European competitors such as Volkswagen and BMW
Tesla’s sales in key European markets fell again in March, with sales in France and Sweden dropping for a third straight month.
Tesla began offering the refreshed Model Y with updated styling and enhanced interiors in China late February and in the U.S. and Europe last month.
Data from auto industry associations and analyst estimates point to notable declines in Tesla sales during the first two months of the year in the U.S., Europe, and China.
Tesla has indicated plans to launch a lower-priced model based on its existing platform this year, but is yet to release specific details about the vehicle.
Its pricey Cybertruck pickup, launched in late 2023, has seen limited demand due to its polarizing trapezoidal design and quality concerns. Tesla recently recalled nearly all Cybertrucks to address a potential exterior panel issue.
While Tesla may see less pain from the new 25 per cent tariffs on imported vehicles due to its U.S.-based manufacturing, Musk has said cost implications are “significant”. Tesla has also warned about potential retaliatory tariffs in response to the levies.