Tesla experiences 13% drop in sales due to backlash against Musk, increased competition, and outdated lineup dissuading buyers.

ng, and other incentives.Analysts surveyed by FactSet had anticipated significantly higher deliveries of 408,000.Dan Ives from Wedbush noted in a client communication that Tesla is encountering weak demand in the United States and China, in addition to facing challenges in Europe. He mentioned that the negative impacts of the brand crisis on Tesla are undeniable.“The brand crisis issues are clearly having a negative impact on Tesla…there is no debate,” he stated.Ives acknowledged that while Wall Street and analysts had prepared for poor first-quarter results, the actual figures were even worse than anticipated.“We are not going to look at these numbers with rose-colored glasses…they were a disaster on every metric,” he added.Tesla’s shares have plummeted by approximately 50% since reaching a record in mid-December, as expectations of lightened regulations and substantial profits under then-president Donald Trump were replaced by concerns that boycotts of Musk’s products and other issues could significantly impact the company’s performance.Experts are uncertain about the extent to which the decline in sales is attributable to protests or other causes. Electric vehicle sales, in general, have been slow, and Tesla is specifically affected as potential buyers delay purchases of the popular Model Y due to plans for an updated version later in the year.Even optimistic financial analysts who had previously downplayed the repercussions of Musk’s controversial political views are now conceding that they are detrimental to the company, a sentiment Musk has also recently acknowledged.“This is a very expensive job,” stated the Tesla CEO at a rally in Wisconsin, referring to his responsibilities as head of the team appointed by the Trump administration to reduce government positions and spending. “My Tesla stock and the stock of everyone who holds Tesla has gone roughly in half.”Tesla’s stocks experienced a 3% decline on Wednesday.Recently, Tesla vehicles have been vandalized and set on fire, while protests have erupted at numerous Tesla outlets. Some owners have affixed bumper stickers to their cars declaring, “I bought this before Elon went crazy.”European consumers have shown reluctance to purchase Tesla vehicles, particularly Germans who were upset after Musk publicly backed a far-right political party during national elections and made what was perceived as a Nazi-like gesture at a Trump rally in January.This resistance comes as the Texas-based electric vehicle manufacturer faces intense competition from other electric vehicle producers offering superior models, such as BYD. In March, the Chinese electric vehicle powerhouse unveiled technology that enables its vehicles to recharge in just five minutes.