Amid growing fallout over Elon Musk’s involvement in the Trump administration, Tesla’s sales fell a staggering 13 percent in the first quarter of 2025 year over year.

Tesla stock was down on Wednesday after a severely disappointing first-quarter delivery report that will stoke fear of brand damage caused by CEO Elon Musk’s political activities. Tesla delivered 336,

Mr. Musk’s involvement in right-wing politics contributed to a 13% drop in global deliveries in the first quarter, including steep declines in places like Norway.

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It also is a warning that the company’s first-quarter earnings report later this month could disappoint investors.

Tesla's new car registrations in Italy rebounded sharply in March after a plunge the previous month to stand down 7% year-on-year in the quarter as a whole, data from the Transport Ministry showed on Tuesday.

The Tesla logo is seen on a car at the Paris Games Week (PGW), a trade fair for video games in Paris, France, October 27, 2024. REUTERS/Sarah Meyssonnier/File Photo Tesla's sales have plummeted to their lowest level in three years in a surprise drop after a backlash against its boss Elon Musk.

Tesla reported first quarter global deliveries that widely missed estimates, as demand issues clearly hit the EV-maker. For the quarter, Tesla reported 336,681 deliveries vs. 390,

Tesla's sales in key European markets fell again in March, data showed on Tuesday, adding to signs that drivers are shunning Elon Musk's electric car brand as competition from China stiffens and some protest against his political views.

The bank is skeptical about the timing of a cheaper Tesla model, as well as the success of a coming robotaxi service.

Tesla stock price dropped on April 2, 2025, after reporting 336,681 vehicle deliveries, a 13% decline compared to last year. Analysts expected 372,410 deliveries, but Tesla missed the mark. The stock fluctuated between $259.

A tough year for Tesla stock continues after the carmaker reported a 13% drop in deliveries for the first quarter. Tesla shares were down 4.8% at $255.50 in premarket trading. Shares had already fallen more than 33% year-to-date when the market closed Tuesday.