Tesla, the American electric cars company, recorded a 13% decline in its sales during the first quarter of 2025, at a time when it faces production challenges and increasing repercussions related to the growing political role of its CEO Elon Musk, according to Reuters and a number of US financial agencies.
The company announced that it had handed over 336 thousand and 681 cars during the three months ending March 31, a number that came lower than the expectations of the analysts, and reflects the loss of several weeks of production due to the work on the modernization of the Model Way, the company’s latest publications since 2020.
The company’s shares are declining in Wall Street
After announcing the results, Tesla witnessed a sharp decline by more than 6% in early transactions on the Wall Street Stock Exchange, before its losses later reduced 2.2% by 14:00 GMT, according to the French News Agency.
This decrease comes after weaker performance than expected compared to the same period last year, which increases doubts about the company’s ability to maintain its momentum in light of escalating pressure.
The brand at “crossroads”
Commenting on the French News Agency on the numbers, Dan Evis, a prominent technology analyst at Widbush, who was supportive of Tasla, said the results represent a “disaster by all standards”. He explained that “Tesla is now at a crossroads, and this cannot be separated from the negative effects of a mask involvement in the political arena.”
He added: “The more siding the political mask, the brand, the brand, is undoubtedly. What happened in the last quarter is a clear model of the damage caused by Musk to the company.”
Evis called on billionaire Musk to clarify how he balanced his obligations in leading Tesla and his role in the administration of US President Donald Trump, noting that this moment represents “the moment of the truth for Musk to go beyond the brand crisis and lead the company to safety.”
These statements come amid the continued calls to boycott Tesla products, as well as sabotage cases targeting the company’s facilities, in a response to Mask’s contribution to controversial decisions taken within the American administration, including the demobilization of thousands of employees from federal institutions.
In the context, the Politico newspaper reported today, Wednesday – quoting sources close to Trump – that he told members of his administration and close to his ally, billionaire Elon Musk, will soon step down from his government position.
Politico reported that Trump and Mask have decided in the past few days that he had to return soon to start the work of his companies, according to Reuters.