Tesla first quarter sales sink amid anger over Musk politics

Published
0
An image of a Tesla Model S parked next to a charging unit. — Reuters/File
An image of a Tesla Model S parked next to a charging unit. — Reuters/File

Tesla reported a 13 per cent drop in first-quarter auto sales on Wednesday amid lower production during factory upgrades and blowback over CEO Elon Musk’s work for President Donald Trump’s administration.

Musk’s electric vehicle company delivered 336,681 autos in the quarter ending March 31, missing analyst expectations, as it pointed to the “loss of several weeks of production” while it ramps up upgrades for its Model Y output.

Tesla shares fell more than 6pc in early trading but later partially rebounded.

The weak car sales add to questions about Musk’s continued stewardship at the automaker, which has been targeted for consumer boycotts and vandalism as the billionaire has helped engineer thousands of job cuts across the US government.

Wedbush’s Dan Ives, a prominent technology analyst who has been a longtime believer in Tesla’s growth potential, called the figures “a disaster on every metric”, according to a note.

“It’s a fork in the road moment,” said Ives, who has called for Musk to publicly outline how he is balancing his Tesla commitments with his work for Trump. “The more political he gets … the more the brand suffers, there is no debate. This quarter was an example of the damage Musk is causing Tesla.

“This continues to be a moment of truth for Musk to navigate this brand tornado crisis moment and get onto the other side of this dark chapter for Tesla.”

Ives and other long-term Tesla bulls have viewed the company as poised for potentially massive growth, viewing Musk as a guru in state-of-the-art autonomous driving and artificial intelligence technology expected to play a growing role for the foreseeable future.

While Tesla’s release on Wednesday did not break out sales for the Cybertruck, the figures suggest anaemic sales for the futuristic vehicle, which Musk has passionately embraced.

In March, Tesla announced it was recalling essentially all of the Cybertrucks because of a defect that can lead an exterior panel to detach, posing a crash risk.

Tesla also did not specify deliveries by country, but figures from national auto authorities have shown big drops across Europe, where Musk’s association with Trump has sparked criticism.

In March alone, Tesla sales fell by more than one-third in France and almost two-thirds in Sweden. Sales fell 56pc in Denmark in the first quarter.

Tesla shareholder Ross Gerber of Gerber Kawasaki Wealth and Investment Management, who has previously called for the board to remove Musk as CEO, slammed the figure on X, the former Twitter platform now owned by Musk.

“These numbers suck,” Gerber posted. “The Cybertruck is basically not selling. The brand is broken and may not be fixable. The board of directors is 100pc responsible.”

Near 1440 GMT, Tesla shares were down 2.7pc.

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Kashmir unresolved
Updated 30 Sep, 2026

Kashmir unresolved

The just solution lies in India addressing the issue through a trilateral dialogue involving the legitimate representatives of the Kashmiri people and Pakistan.
Water shortage
30 Sep, 2026

Water shortage

THAT the country is entering the Rabi season with an anticipated water shortage of nearly 25pc, the lowest carryover...
Young hearts
30 Sep, 2026

Young hearts

THE observance may have passed, but the message of World Heart Day should not fade with it. The occasion is a useful...
Terror and politics
Updated 29 Sep, 2026

Terror and politics

There is an urgent need to tone down the rhetoric and tackle terrorism as a collective challenge for both the affected provinces and the federation.
Watching the glaciers
29 Sep, 2026

Watching the glaciers

THE latest signs from Pakistan’s mountains are worrying. Suparco says the number of unfrozen glacial lakes it...
Dangerous agenda
29 Sep, 2026

Dangerous agenda

AS the world remains fixated on the US-Iran conflict, elsewhere in the Middle East, Israel is consolidating its grip...