Tesla records worst deliveries in two years amid Elon Musk backlash

Summary

Tesla recorded 336,681 deliveries, its worst quarterly performance in more than two years as the brand suffers a backlash to CEO Elon Musk’s political maneuverings. The dip in sales comes as Musk continues leading DOGE, the “advisory body” that has laid off thousands of federal employees and attempted to eliminate entire agencies and programs. His involvement in the government has not only proven controversial, but also unpopular, leading many to wonder what effect it might have on Tesla’s sales. Even one of Tesla’s top supporters on Wall Street recently beseeched Musk to spend less time on politics and more time running his businesses. Tesla also released production numbers of 362,615, which is down from previous periods in part due to the automaker switching its production lines for the new Model Y refresh. Analysts on average expected Tesla to report deliveries of 408,000 EVs for the period of January to March, per FactSet. Though in recent weeks, several analysts downgraded their expectations to below 400,000 as ‘Tesla Takedown’ protests erupted across the country and international sales fell. Tesla doesn’t break down its delivery numbers by region, but sales in Europe and China have fallen in the first quarter. In the first two months of the year, European sales tumbled 49% year-over-year, even as sales of EVs overall grew, per the European Automobile Manufacturer’s Association. In Germany – home to one of Tesla’s gigafactories and usually one of Tesla’s largest EU markets – those numbers are down even further. In February, Tesla sales in Germany were down 76% to just 1,429 units compared to 6,038 in 2024. The fall in sales follows Musk’s endorsement of Germany’s far-right AfD party in last month’s national election. That trend has followed throughout Europe in March, per early data released by some countries. For example, French trade association PFA reported 3,159 Tesla deliveries last month, down 37% from March 2024 and down 41% for the quarter. The story is...