Tesla Faces Record Sales Drop Amid Controversy and Competition

Colma, California – Tesla Inc. reported a record sales drop of 13% in the first quarter of 2025, marking the largest decline in deliveries in the company’s history. The automaker delivered 336,681 vehicles between January and March, which is 50,000 fewer compared to the same period last year.

This significant decrease represents Tesla’s worst quarterly sales figures in nearly three years, as mounting competition in the electric vehicle (EV) market and public backlash against CEO Elon Musk have contributed to a decline in demand, according to analysts.

“The combination of increased competition and Musk’s controversial leadership style appears to have soured consumer sentiment towards Tesla,” said Daniel Ives, an analyst at Wedbush Securities. “This is a pivotal moment for the company as it faces pressure from both new entrants in the EV market and an increasingly critical consumer base.”

Protests have taken place outside Tesla showrooms, fueled by opposition to Musk’s actions as the head of the Department of Government Efficiency, which some critics argue has distracted him from his role at Tesla. Additionally, the policies of former President Donald Trump‘s administration have also drawn ire from segments of the public, further complicating the company’s image.

Furthermore, incidents of vandalism have reportedly increased, affecting Tesla facilities and charging stations. There have been reports of both verbal and physical confrontations aimed at Tesla cars, which may have deterred potential buyers from following through with purchases.

Despite these challenges, industry experts caution against writing off Tesla entirely, as the company still holds a notable share of the EV market. “While this quarter’s results are alarming, Tesla remains a leader in innovation and technology, which can be advantageous for them moving forward,” said Ives.

The company now faces a critical period as it works to rebuild consumer trust and navigate an evolving automotive landscape filled with new competitors vying for market share.