Tesla Quarterly Sales Down 13%, Stock Plunging
Tesla (TSLA) has lost tremendous stock value over the last few months, and its sales across the globe are down significantly for the first quarter of the year.
The last time Tesla saw such dire sales numbers was back in 2022, and its stock has plummeted this year due to higher tariffs, CEO Elon Musk focusing on government business, and backlash against the Tesla brand. What was once the most beloved electric car company is now seen as a partner with the embattled Trump administration.
As a result of Musk working under Donald Trump, Tesla vehicles have fallen out of favor among large numbers of the population. Those that once sang the praises of the environmentally friendly car company have been protesting, defacing cars, and attacking Tesla online.
Tesla received a boost to its stock around the U.S. presidential election, but public support quickly withdrew as Trump ordered multiple tariffs to be instituted against foreign nations.
Tesla stock is now valued at $229, down 1.83% from the previous day. The company’s stock started the year off at $379, so it has lost more than 39% since the year began.
Sales Decline and the Hope for Resurgence
Part of the reason that Tesla sales have been in decline is because the company has delayed the release of new vehicles repeatedly. For the first quarter, Tesla sales for its top three vehicles are at 12,881, which is down from its sales for the same period last year of 17,027. That is a 25% drop and has been named on any number of factors.
The formerly leading electric vehicle company is now floundering, and investors are wondering when Musk is going to come back and focus on his company. There have been rumors recently that he will soon leave his government post to help out Tesla, but they are unfounded. In fact, the U.S. press secretary and Musk himself have shot down those reports, printing to Musk’s agreement to finish his work for the government and save $1 trillion by the middle of next year.
Tesla has a few projects in the wings, with a cheaper electric car model scheduled for later this year. They are also making advances on self-driving taxis, but these could be subject to further delays.
Tesla has reported larger than expected sales drops this year so far, and their quarterly report is due later today, after the market closes on Tuesday. It Is unlikely to be good news.
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