Tesla Faces Steep Sales Decline as Musk Backlash and Rivals Take Toll

Tesla Faces Steep Sales Decline as Musk Backlash and Rivals Take Toll

5 months ago | 5 Views

Tesla's EV sales have fallen once again as a result of the anti-Elon Musk attitude and growing competition from competitors. Tesla electric car sales fell significantly in the last three months (April–June), as boycotts over Elon Musk's politics continue to deter customers. Tesla's worldwide vehicle sales decreased to 384,122 units in the first quarter of this fiscal year, compared to 443,956 units during the same time last year. The Tesla Model 3 and Model Y, however, had combined sales of 373,728, surpassing Wall Street analysts' prediction of 356,000, which was good for the company.

The news agency AP stated that the 13% drop in Tesla's worldwide sales compared to the previous year indicates that Musk's support for US President Donald Trump and far-right European politicians has done far more damage to the EV manufacturer's brand than some investors had anticipated. Additionally, it was said that the data Tesla has reported for the most recent quarter suggests that its quarterly profits report, which is due later this month, may be disappointing as rival electric vehicle manufacturers take advantage of its vulnerabilities and seize its market share.

2025 Tesla Delivery Forecast: Tesla investors brace for another year of sales  decline as Musk backlash grows, ET Auto

But the report also predicted that, as in the most recent period, Musk would formally leave the Trump administration and sales would bounce back. Recently, the Tesla CEO stated that the company was going through a significant sales recovery. But the most recent data went against what he claimed.

In the interim, Musk has stated that he is developing a less expensive electric vehicle that will be available this year. This less expensive electric car from the brand is predicted to increase the company's sales figures when it arrives. The most recent sales data arrive as Tesla is shifting its attention away from new car models and towards robots, autonomous driving technology, and robotaxis transporting passengers about without any human intervention.

In the meantime, competition for Tesla is growing, particularly from Chinese automotive OEMs like BYD. The competition from rival EV manufacturers is particularly intense in Europe, where China's BYD has made inroads into its market share. The European Automobile Manufacturers' Association reported that, while the overall market for electric cars grew dramatically, Tesla sales in 30 European nations fell by 28% in May.

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