Tesla’s first quarter sales decline by 13% due to backlash against Elon Musk and decreasing demand for older models.

Tesla experienced a 13% decline in sales during the initial quarter of the year, indicating challenges in capturing consumer interest. This drop can be attributed to several factors, such as an aging product range, intensified competition, and negative feedback associated with Elon Musk’s political affiliations. The decrease in sales warns of potential disappointment in the company’s upcoming first-quarter financial results, raising concerns among investors.

In the January to March quarter, Tesla reported a total of 336,681 deliveries worldwide, contrasted with 387,000 sales during the same period the previous year. Despite offering significant discounts, zero financing options, and other promotions, Tesla failed to meet analysts’ expectations, who had anticipated deliveries reaching 408,000 units.

The stock market witnessed a significant decline in Tesla’s stock value, dropping by half since reaching a record high in mid-December. Initial hopes of relaxed regulations and substantial profitability under the Trump administration have transformed into apprehensions regarding potential impacts on the company due to customer boycotts and other issues.

The exact influence of the sales dwindling on protests and other externalities remains unclear to analysts. Notably, the overall sluggishness in electric vehicle sales has also affected Tesla, particularly as potential buyers delay purchases of the popular Model Y anticipating an updated version later in the year. Furthermore, Tesla has lost market share to rivals, with BYD, a prominent Chinese electric vehicle manufacturer, unveiling innovative technologies allowing for quick car recharging.

Before the market opening on Wednesday, Tesla’s shares plummeted by over 4%, signaling further challenges for the company. These developments underscore the pressing need for Tesla to address its sales decline, strengthen its product offerings, and navigate the changing landscape of the electric vehicle market to regain consumer trust and market share.