Tesla sales have plummeted to their lowest level in three years after a backlash against its boss Elon Musk.
The electric car maker delivered almost 337,000 electric vehicles in the first three months of 2025, a 13% drop from a year ago.
Tesla shares tumbled in early trading on Wednesday after the release of the unexpectedly low sales numbers.
The cars face increasing competition from Chinese firm BYD, but experts believe Musk’s controversial role in the Trump administration have had an effect too.
The firm has blamed the drop on the transition to a new version of its most popular car.
However some analysts have pointed the finger at Musk himself.
“These numbers suck,” Tesla shareholder Ross Gerber of Gerber Kawasaki Wealth and Investment Management wrote on X.
“The brand is broken and may not be fixable”, added Mr Gerber, who has previously called for the board to remove Musk as CEO.
‘Tesla takedown’
There have been protests and boycotts around the world prompted by Musk’s outspoken and controversial political involvement.
He has been heading up President Donald Trump’s Department of Government Efficiency (DOGE) initiative to cut federal spending and slash the government workforce.
On Wednesday, Politico reported that Trump had told his inner circle Musk would be stepping back from the administration in the coming weeks.
Shortly after the report was published, Tesla’s share price turned positive.
The Tesla boss is the world’s richest man and contributed more than a quarter of a billion dollars to help Trump get elected in November.
In recent weeks, Mr Musk poured millions into a Wisconsin Supreme Court race, supporting former Republican attorney general Brad Schimel who was soundly defeated on Tuesday.
The backlash against Mr Musk has included “Tesla Takedown” protests at Tesla dealerships across the US and in Europe.
Tesla vehicles have also been vandalised, and Trump has said his administration would charge people who deface Teslas with “domestic terrorism.”
Musk’s stewardship of his businesses, including Tesla, has been called into question.
In an recent interview, he admitted he was running his enterprises “with great difficulty,” adding: “Frankly, I can’t believe I’m here doing this.”
Tesla shares have lost more than a third of their value over the last year.
“We are not going to look at these numbers with rose colored glasses… they were a disaster on every metric,” Wedbush analyst Dan Ives said in a note on Wednesday.
“The more political [Musk] gets with DOGE the more the brand suffers, there is no debate.”
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