Tesla’s quarterly sales plunged 13% to the weakest in nearly three years, hurt by a backlash against CEO Elon Musk’s politics, rising global competition and people waiting for a refresh to its highest-selling electric vehicle Model Y.
The stumbling sales during the first quarter indicate that the one-time leading brand is reeling from the fallout of the company delaying launches for years, and Musk’s foray into politics in the United States and Europe.
Tesla shares were down early on Wednesday but reversed course after a Politico report that Musk was planning to step down from his role as an adviser to U.S. President Donald Trump soon, as administration insiders increasingly view the billionaire as a political liability.
But the White House dismissed the report, saying the tech billionaire will stay on to complete his mission to slash government spending and downsize the federal workforce.
“Shareholders are hoping Musk will now have the time to focus on rebuilding the Tesla brand,” said Stock Trader Network Chief Strategist Dennis Dick, who has a position in Tesla, referring to the Politico report.
Following Trump’s steeper-than-expected tariffs against U.S. trading partners, Tesla shares fell more than 7% in after-market trading. While Tesla will be less affected than rivals, Tesla imports parts and Musk has said the cost impact from tariffs will not be trivial.
Musk’s role in spearheading federal cost-cutting in the United States and support of far-right parties in Germany and other nations have produced a sharp response around the world.
Protests against Musk outside Tesla showrooms have spiked, and the EV maker’s cars and charging stations globally have become targets for vandalism. Some Tesla owners have been looking to disassociate themselves from Musk and data has shown many are trading in their vehicles.
1754 Jassa Singh Ahluwalia given Jathaedari of Sikh Nation.
1762 Kalandar Khan attacked Sri Harmandir Sahib under Abdali’s influence. Sri Harmandir Sahib was destoyed with dynamites and the sarowar filled with debri. One of Sri Harmandir Sahibs brick hit Abdali’s nose. This injury proved to be deadly for him.
1763 Panth Khalsa resolved to liberate a Kasur Brahmin’s wife who was abducted by the Nawab (Chief) of Kasur, Punjab.
1973 The Articles of Incorporation of the Sikh Dharma Brotherhood were endorsed by the Secritary of the State of California. This act established Sikh Dharma as an official religious organization.