Tesla Sales Slump to Lowest Since 2022 Amid Anti-Musk Backlash

In the first quarter of 2025, Tesla reported a significant decline in vehicle deliveries, marking its worst performance since 2022. The company delivered 336,681 vehicles, falling short of analysts' expectations of 390,000 and the 387,000 units delivered in the same quarter the previous year. This 13% year-over-year decrease has been attributed to several factors, including weak demand in China and a consumer backlash in Europe, partly due to CEO Elon Musk's political activities in the region. 

Musk's political alignment, notably his involvement with the Trump administration, has led to public dissent, particularly among Democratic consumers. This political stance has been perceived as contradictory to the values of free speech and environmental protection, causing some consumers to distance themselves from the brand. ​

The backlash has manifested in various ways, including a viral TikTok trend where former Tesla owners share videos of trading in their vehicles for other electric brands, set to Taylor Swift's song "Look What You Made Me Do." This movement reflects growing dissatisfaction with Tesla, with participants citing Musk's political involvement as a primary reason for their decision to switch brands. ​

Beyond political controversies, Tesla faces challenges related to product innovation and quality. Critics point to the company's failure to deliver on promises such as self-driving capabilities and reliable battery range. Additionally, quality control issues have plagued Tesla's vehicles, leading consumers to explore alternatives offered by competitors, particularly Chinese EV manufacturers that provide advanced technology at more competitive prices. ​

Despite implementing price cuts and low-interest financing offers to stimulate demand, Tesla's sales have continued to decline. The company's aging model lineup and the perception of inconsistent pricing strategies have contributed to consumer hesitation. Analysts suggest that without significant innovation or external factors such as a spike in gasoline prices, Tesla may struggle to regain its market momentum. ​

In contrast, competitors like BYD have reported robust sales, with BYD selling 416,388 electric vehicles in the same period, surpassing Tesla's figures. This shift underscores the intensifying competition in the EV market and highlights the need for Tesla to address both internal challenges and external perceptions to maintain its position as a market leader.