Tesla, once the leader in the electric vehicle (EV) market, has seen its sales take a serious hit. In the first quarter of the year, company sold 336,681 cars worldwide. This was a sharp drop of 13% from the 386,810 cars sold in the same period last year. Experts had predicted a smaller decline of about 3.7%, but the actual numbers turned out to be far worse.
This marks Tesla’s weakest sales performance in almost three years. The company had already reported its first-ever annual sales decline in 2024, and now the numbers for 2025 are looking just as troubling. the company’s stock price has dropped around 45% since mid-December, wiping out billions of dollars in value.
Many believe the decline is due to a mix of reasons. A major factor is that customers are waiting for the new version of the Model Y, Tesla’s best-selling car. Another issue is the growing competition from other EV makers, especially Chinese brands like BYD. The company’s production lines also faced interruptions as factories were retooled for the refreshed Model Y. These delays meant weeks of lost production time.
Controversy Surrounding the CEO
Tesla’s CEO has been at the center of political controversies, which has led to a backlash against the brand. His involvement in politics, both in the United States and Europe, has sparked protests and even acts of vandalism against the showrooms and charging stations worldwide. Some of the owners have been trading in their cars, not wanting to be associated with the company anymore.
Recently, there were reports suggesting that the CEO might step down from his role as an advisor to the U.S. government. Some investors saw this as a positive step, hoping that he could focus on rebuilding Tesla’s image. However, the White House denied these claims, stating that he would remain in his advisory role. This uncertainty continues to worry shareholders.
Adding to the controversy, the CEO spent over $20 million backing a political candidate in a recent state election, but the candidate lost. This further fueled public outrage, with people protesting that democracy should not be influenced by money.
Tesla Losing Its Lead in the EV Market
For years, Tesla has been the top name in the EV industry. But now, it is facing stiff competition. Chinese carmaker BYD is set to overtake Tesla as the world’s top EV seller, with a projected market share of 15.7% compared to Tesla’s 15.3%.
Tesla’s sales in Europe have been falling for months, especially in key markets like France and Sweden. In China, one of the company’s biggest markets, sales have also been weak. Meanwhile, BYD and other competitors are attracting more customers with their affordable and advanced EVs.
Tesla had pinned its hopes on two major products: the Cybertruck and a future affordable EV. However, demand for the Cybertruck has been lower than expected. Some buyers find its unique design unappealing, while others have raised concerns about quality issues. There is little information on the progress of the cheaper EV, leaving customers and investors wondering about Tesla’s next move.
The company is set to release its first-quarter earnings on April 22. Until then, Tesla’s troubles continue to grow, and the road ahead looks challenging for the once-dominant EV maker.
