Tesla (NASDAQ: TSLA) reported its worst quarterly deliveries since 2022 with just 336,681 vehicles sold in the first quarter of 2025 — a staggering 13% drop from the same period last year.
It’s the first time Tesla’s delivery numbers have dropped without a pandemic or planned factory shutdown to blame.
The decline comes as Tesla’s competitors have seen sales surge, with consumers looking to preempt a rise in costs from President Donald Trump’s proposed tariffs.
Tesla Rivals Surge
The Ford Mustang Mach-E — the best-selling non-Tesla EV — saw its Q1 2025 sales jump by 21% compared to Q1 2024, reaching 11,607 units. Ford’s broader electrified lineup (NASDAQ: F) posted a 26% gain year-over-year.
Similarly, the Hyundai IONIQ 5 recorded a 26% increase in sales, rising from 6,822 in Q1 2024 to 8,611 in Q1 2025.
The Political Backlash Against Musk
Consumers are pulling back from Tesla due to CEO Elon Musk’s increasingly extreme politics. Musk’s Nazi salute, incitement of hatred, and public support for extremist parties like Germany’s AfD and figures such as Tommy Robinson have triggered a severe backlash — both in Europe and in the United States.
Musk’s focus on regime change in Washington has arguably created a leadership vacuum at Tesla, while also creating tensions within the Trump administration.
POLITICO reports that President Donald Trump has informed Cabinet officials and close allies that Musk “will be stepping back in the coming weeks” from involvement in the so-called Department of Government Efficiency (DOGE).
The news sent Tesla stock up by more than 14% on Wednesday — with some investors taking a bullish view on the company should Musk rededicate attention to it.
Under the Influence
But Musk’s behavior is becoming increasingly erratic — and difficult for anyone to predict or rein in. Not just because he’s the world’s richest man, but also due to his admitted use of ketamine, a drug known to produce feelings of invincibility and messianic delusions.
Case in point: Musk described a Wisconsin Supreme Court race — into which he poured over $20 million — as one that would determine the future of “Western civilization” and “the world.”
The result? Democrat Susan Crawford won by a decisive 9-point margin, with anti-Musk backlash playing a key role.
Musk has rapidly become one of the most reviled figures in American public life, uniting opposition across the left, independents, and centrists. His money helped propel Trump to victory in 2024. But his push to slash programs like Medicaid and Social Security threatens to fracture Trump’s 2024 populist new-right coalition.
Western civilization won’t collapse because of a Wisconsin election. But if Musk keeps this up, he may see his own world collapse before him.
Globely News covers the game changers transforming the worlds of business, sports, politics, and technology. From AI and electric vehicles to the rise of China and the NFL's next stars, we've got you covered.