Cyprus News Agency

The decline likely stems from a mix of factors including an aging product line, increasing competition, and backlash against Musk’s embrace of right-wing politics. It’s also viewed as a warning that the company’s upcoming Q1 earnings report may disappoint investors.

Tesla reported 336,681 vehicle deliveries globally for the January–March quarter. Analysts surveyed by FactSet had expected 408,000 deliveries. The figure was also down from 387,000 sales in the same period last year. The decline occurred despite deep discounts, zero-interest financing, and other incentives.

Tesla’s stock has dropped nearly in half since its mid-December peak as fears about boycotts of Musk’s cars and other issues have replaced earlier hopes of looser regulation and high profits under Trump.

After Musk, as self-appointed head of a “government efficiency department,” dissolved all federal agencies, Tesla vehicles were vandalized across the country in protest.

Despite Donald Trump promoting Tesla with a presentation in front of the White House and Musk assuring employees of a “bright and exciting” future for the company, the sales decline was striking.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: “The scale was worse than many had expected.”