Tesla sales for the first quarter of 2025 fell to their lowest level in three years, even as overall EV command continued to rise worldwide. The plunge reflected a growing backlash against Tesla CEO Elon Musk’s political shift to the far right and his role as head of the Trump administration’s controversial Department of Government Efficiency. Headlight.News has this breaking story.
We’ll have a more extensive version of this story to follow.
Tesla CEO Elon Musk’s ties Pres. Trump appear to have backfired, leading to plunging sales.
Tesla’s global sales plummeted by 13% during the first quarter of 2025, more than three times more than Wall Street’s consensus forecast – though most analysts had begun expecting a sharper downturn in recent weeks as protests against CEO Elon Musk expanded to hundreds of dealerships around the world and more and more current owners began trading in their Teslas on EVs from competing brands.
Deliveries totaled just 336,681 vehicles, down from 386,810 a year earlier. That marked Tesla’s worst first-quarter performance in three years. But there’s widespread concern among investors that the coming months could bring an even worse downturn.
Over the weekend, at least 200 Tesla showrooms were targeted for demonstrations, with rallies taking place at others around the world. In Rome, 17 vehicles were destroyed in what was believed to be an arson fire. Many EV buyers have told Headlight.News and other media outlets they’ve opted not to buy Teslas in light of Musk’s political actions, while existing owners have been trading in for alternative products despite what Edmunds.com has reported as a sharp downturn in residual values for used Tesla products.
Wall Street’s delayed reaction
Opposition to Tesla – and Musk – has grown worldwide, Kia’s Norwegian subsidiary briefly running this ad.
Tesla stock has ridden a roller-coaster since hitting a 52-week high of $488.54 in mid-December. At one point, shares were off by more than 50%. They’ve partially rebounded over the past two weeks, closing Wednesday at $282.76. Investors were buoyed this week by reports suggesting Musk was getting close to ending his ties to DOGE.
“Exactly what the stock needed,” Stock Trader Network Chief Strategist Dennis Dick, who has a position in the stock, told Reuters. “Shareholders are hoping Musk will now have the time to focus on rebuilding the Tesla brand.”
But the unexpectedly weak sales left many wondering if Musk’s possible move away from an active role in the Trump administration would matter at this point.
Following the release of the sales numbers – which came after the final bell on the NASDAQ exchange, shares trading as TSLA quickly reversed direction. As of 6:00 PM EDT, the stock was down around 6%, off around $16 from its closing.
Headlight.News will have more coverage of Tesla’s sales and the challenges it faces overnight.
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