Key Points:

• Tesla's vehicle deliveries dropped approximately 13% in Q1 2025 compared to last year.
• The decline is attributed to increasing competition and backlash against CEO Elon Musk's political involvement.
• Stock prices have fluctuated significantly amid news regarding Musk's potential withdrawal from his political roles.
• Sales have notably decreased in key international markets, including Europe and China.

Tesla is experiencing a sharp decline in vehicle deliveries, marking a troubling period for the electric vehicle manufacturer. In the first quarter of 2025, Tesla delivered approximately 336,000 vehicles, representing a 13% drop from over 387,000 during the same period last year, according to a report by ABC News. This decline has occurred alongside a significant backlash against CEO Elon Musk, particularly in light of his close ties to former President Donald Trump and his controversial political actions.

These recent developments have negatively impacted Tesla's stock price, which fell about 41% since the beginning of the year. Analysts, including Dan Ives from Wedbush Securities, have expressed alarm regarding the company's performance, labeling the latest sales figures as a "disaster on every metric." Ives noted that the combination of Musk's political involvement and evolving consumer preferences has created a significant 'brand crisis' for Tesla, which has been compounded by protests and boycotts from consumers feeling disenfranchised by Musk's actions.

Furthermore, Tesla's difficulties are heightened by fierce competition from companies like China's BYD, which plans to expand its market share significantly, as reported by Newsweek. BYD is capitalizing on Tesla's turbulence, with some analysts believing it could surpass Tesla's market share in the near future.

Following various incidents of vandalism against Tesla properties and vehicles, many consumers are reconsidering their associations with the brand. Musk's reported plans to step back from his advisory role in the Trump administration may raise hopes among investors that he can refocus his energies on reviving the company. Tesla recently reported production and delivery figures that fell short of projections made earlier in the year, further indicating significant challenges ahead.

Despite Tesla's lethargic sales in core markets, including ongoing declines in European sales, the company has indicated it remains committed to revitalizing its flagship products. The introduction of new models, such as the Model Y, has been delayed, leading to production challenges across its factories due to retooling efforts.Channel News Asia reported that this transition has impacted production timelines and ultimately sales figures.

As Tesla navigates these tumultuous waters, stakeholders await more detailed analysis during the upcoming quarter report, particularly concerning how political actions and public sentiment will influence future sales outcomes.

For more detailed insights, visit the original articles from BBC, Channel News Asia, and ABC News.