Tesla Sees Decline in Deliveries Amid Growing Backlash Over Musk’s Political Involvement

Tesla reported a significant 13 percent drop in first-quarter deliveries, marking the company’s lowest delivery numbers since 2022, the Washington Post reports.

The decline, which saw the company deliver approximately 336,700 vehicles in the first three months of 2025, has been attributed to multiple factors, including growing backlash against CEO Elon Musk’s political activities.

This drop in deliveries stands in contrast to the strong sales reported by Tesla’s competitors. General Motors, Hyundai, Honda, and Nissan all reported notable sales increases in the same period. In particular, GM’s first-quarter electric vehicle (EV) sales nearly doubled compared to last year, highlighting a strong performance across the broader auto industry.

Analysts are pointing to Musk’s political controversies, especially his involvement in the Trump administration’s US DOGE Service, as a key factor contributing to Tesla’s brand image challenges. Some analysts argue that Musk’s political actions have led to what they describe as a “brand crisis” for the company. Deepwater Asset Management analyst Gene Munster noted that the decline in Tesla’s deliveries appears to be a “Tesla-specific issue,” and he estimated that the company lost about 80,000 potential deliveries due to “brand damage.” Munster attributed around 90 percent of the shortfall to issues related to Musk’s political influence.

Tesla’s first-quarter delivery drop is the sharpest year-over-year decrease since the introduction of the Model Y in 2020. While Tesla did not explicitly address the political controversy in its sales statement, the company cited the transition of Model Y production lines at its factories, which led to several weeks of halted production.

In addition to internal factors, Tesla faces intensified competition from Chinese automaker BYD in the global market, and a growing backlash in Europe. The European market, which accounts for a significant portion of Tesla’s sales, has seen increased resistance, with protests targeting the company. Activists have even launched campaigns to challenge Musk’s involvement in government, which has further fueled tensions.

Protests have been staged at numerous Tesla locations worldwide, with the “Tesla Takedown” movement calling for action against the company’s association with Musk’s political activities. The number of Tesla vehicles traded in for new or used cars has also surged, with some owners expressing regret over their purchases due to Tesla’s evolving image as a symbol of far-right politics.

Musk’s involvement in politics, along with escalating protests and public sentiment turning against the company, has also been linked to a decline in Tesla’s stock value. The company’s stock has dropped more than 30 percent in 2025, following a post-election surge in 2024. This marks Tesla’s first annual drop in electric vehicle deliveries in over a decade.