336,681 Units Delivered, Down 13% Year-on-Year
Lowest Since Q2 2022
Tesla Hit by Growing Anti-Musk Sentiment
American electric vehicle company Tesla's vehicle deliveries in the first quarter of this year decreased by 13% compared to the same period last year, marking the lowest level in about three years. The growing backlash against Tesla CEO Elon Musk, who is known as former U.S. President Donald Trump's "First Buddy," and the upgrade of the flagship model 'Model Y' are analyzed as factors leading to sluggish vehicle sales.
On the 1st (local time), Tesla announced that vehicle deliveries from January to March this year totaled 336,681 units. This represents a 13% decrease compared to the same period last year and is the lowest since the second quarter of 2022. It also fell significantly short of Bloomberg experts' forecast of 390,000 units.
The number of vehicles produced by Tesla in the first quarter was recorded at 362,615 units.
Musk CEO's expanding political influence and the resulting negative image are cited as major reasons for the sluggish vehicle sales. As the head of the Department of Government Efficiency (DOGE) under the second Trump administration, Musk is leading large-scale restructuring efforts, including federal workforce and cost reductions. He continues to make his characteristic outspoken remarks on political issues and attempts to exert influence on the administration, raising concerns. It is also reported that he has conflicts with some of President Trump's aides and Republican lawmakers.
In Europe, resentment toward Musk CEO is also growing. He openly supports far-right parties in major countries such as Germany and advocates for the United States' withdrawal from the North Atlantic Treaty Organization (NATO), which has deeply alienated European consumers. In late February, he sparked controversy by mocking Ukrainian President Volodymyr Zelensky's military uniform instead of a suit at the U.S.-Ukraine summit held at the White House. As a result, incidents of Tesla vehicle vandalism and boycotts have occurred in some parts of the U.S. and Europe, causing backlash against Tesla.
Additionally, Tesla's reorganization of global factory operations to produce the new 'Model Y' also contributed to the decrease in vehicle deliveries in the first quarter.
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