TSLA rollercoaster ride: Tesla sees largest-ever drop in vehicle deliveries, but report says Musk could leave DOGE

On Wednesday, Tesla reported its largest drop in delivery numbers to date, and a 13% drop in sales since the beginning of the year, in part due to backlash against CEO Elon Musk’s role in the U.S. government, coupled with growing competition in the EV market. However, by midday, shares of the EV maker started moving higher following an unconfirmed Politico report that Musk may soon step away from his role in the Trump administration. That report said Trump insiders and allies have become increasingly “frustrated with his unpredictability” and see him as a “political liability,” but the retreat is also likely the result of the hit his businesses have taken. Here’s what to know about the latest Tesla delivery numbers and sales, as well as how the company’s stock is doing today. Tesla first-quarter sales and delivery numbers plummet A look at the numbers shows Tesla posted its worst sales in nearly three years. It delivered 336,681 cars in the first quarter, down from 387,000 in the first three months of 2024 and less than in any period since the second quarter of 2022. The EV maker missed analyst estimates of as low as 350,000 vehicles. Analysts had predicted lower sales following poor European numbers, and because Tesla temporarily closed some factories to update the new Model Y. On Tuesday, Electrek reported Tesla has $200 million worth of unsold Cybertrucks sitting in its inventory. Tesla sales in Europe and China are down Wednesday’s sales report follows data from the European Automobile Manufacturers’ Association that confirms Tesla sales fell 49% in Europe in the first two months of the quarter, despite the fact that overall EV sales in Europe were up 28%, pointing to a loss of the electric vehicle market share. Another reason for the drop can be attributed to European Tesla boycotts over Musk’s controversial political views, including his support for Europe’s far-right parties. While Europe isn’t the largest market for electric vehicles, China is. China is also Tesla’s second-largest market after the U.S., where it now faces growing competition from other EV automakers. Chinese automaker BYD reported sales of more than 416,000 fully electric passenger vehicles in the quarter, up 39% from the previous year, overtaking Tesla as the world’s largest seller of EVs. What does this mean for TSLA stock? Shares of Tesla (Nasdaq: TSLA) fell about 2% in early trading and are now up about 4% in midday trading at the time of this writing, due in part to that Politico report that Musk may be moving on from the White House. While Tesla stock started the year strong, and nearly doubled after the presidential election, it has lost 44% since December’s all-time high. In 2025, the stock is down over 35% year to date, taking a major hit due to the Musk backlash, including protests at Tesla dealerships in the form of Tesla Takedowns. A recent CNN poll found 53% of Americans rate Musk negatively, with only 35% giving him a positive rating, making him even more unpopular than Vice President JD Vance (who has a 44% unfavorable rating).

Apr 2, 2025 - 20:20

TSLA rollercoaster ride: Tesla sees largest-ever drop in vehicle deliveries, but report says Musk could leave DOGE

On Wednesday, Tesla reported its largest drop in delivery numbers to date, and a 13% drop in sales since the beginning of the year, in part due to backlash against CEO Elon Musk’s role in the U.S. government, coupled with growing competition in the EV market.

However, by midday, shares of the EV maker started moving higher following an unconfirmed Politico report that Musk may soon step away from his role in the Trump administration. That report said Trump insiders and allies have become increasingly “frustrated with his unpredictability” and see him as a “political liability,” but the retreat is also likely the result of the hit his businesses have taken.

Here’s what to know about the latest Tesla delivery numbers and sales, as well as how the company’s stock is doing today.

Tesla first-quarter sales and delivery numbers plummet

A look at the numbers shows Tesla posted its worst sales in nearly three years. It delivered 336,681 cars in the first quarter, down from 387,000 in the first three months of 2024 and less than in any period since the second quarter of 2022. The EV maker missed analyst estimates of as low as 350,000 vehicles.

Analysts had predicted lower sales following poor European numbers, and because Tesla temporarily closed some factories to update the new Model Y. On Tuesday, Electrek reported Tesla has $200 million worth of unsold Cybertrucks sitting in its inventory.

Tesla sales in Europe and China are down

Wednesday’s sales report follows data from the European Automobile Manufacturers’ Association that confirms Tesla sales fell 49% in Europe in the first two months of the quarter, despite the fact that overall EV sales in Europe were up 28%, pointing to a loss of the electric vehicle market share.

Another reason for the drop can be attributed to European Tesla boycotts over Musk’s controversial political views, including his support for Europe’s far-right parties.

While Europe isn’t the largest market for electric vehicles, China is. China is also Tesla’s second-largest market after the U.S., where it now faces growing competition from other EV automakers. Chinese automaker BYD reported sales of more than 416,000 fully electric passenger vehicles in the quarter, up 39% from the previous year, overtaking Tesla as the world’s largest seller of EVs.

What does this mean for TSLA stock?

Shares of Tesla (Nasdaq: TSLA) fell about 2% in early trading and are now up about 4% in midday trading at the time of this writing, due in part to that Politico report that Musk may be moving on from the White House.

While Tesla stock started the year strong, and nearly doubled after the presidential election, it has lost 44% since December’s all-time high. In 2025, the stock is down over 35% year to date, taking a major hit due to the Musk backlash, including protests at Tesla dealerships in the form of Tesla Takedowns.

A recent CNN poll found 53% of Americans rate Musk negatively, with only 35% giving him a positive rating, making him even more unpopular than Vice President JD Vance (who has a 44% unfavorable rating).