Tesla Sales Sink Again Amid Musk Boycott Fallout/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Tesla’s global sales fell 13% last quarter as an anti-Musk boycott continues to drag on the brand. Rivals like BYD are seizing market share, especially in Europe. Investors await Tesla’s upcoming earnings as political controversies weigh on demand.
Quick Look: Tesla Sales
- Tesla sales fell 13% to 384,122 vehicles last quarter
- Anti-Musk backlash continues to impact brand perception
- Rivals gain market share, especially in Europe
- Model 3 and Y sales exceeded Wall Street estimates
- Musk promises cheaper EV model to reignite growth
- Tesla’s Q2 earnings set for July 23
Tesla Sales Tumble Again as Anti-Musk Boycott Persists and Rivals Gain Ground
Deep Look
NEW YORK (AP) — Tesla’s sales plunged in the past three months as a persistent boycott over CEO Elon Musk’s political alliances continues to chill demand — a stark reminder that consumer backlash over Musk’s support for President Donald Trump and European far-right figures is proving more durable than many expected.
The electric vehicle maker reported Wednesday that global sales dropped 13% in the April-June quarter, totaling 384,122 vehicles, down from 443,956 during the same period a year earlier. The decline underscores Tesla’s deepening challenges as competitors seize the moment to lure customers away.
Despite recent optimism from Musk, who claimed Tesla was experiencing a “major rebound,” the latest figures suggest trouble ahead. The slump raises fresh doubts about Tesla’s earnings outlook, with quarterly results set for release later this month.
Not all the data was grim. Sales of Tesla’s core Models 3 and Y reached 373,728 vehicles, beating Wall Street’s consensus estimate of around 356,000. That bit of relief helped Tesla shares rise 3.7% in early trading Wednesday.
“The numbers weren’t as bad as feared, given all the analyst forecast cuts recently,” said Seth Goldstein, an equity analyst at Morningstar. “Still, Tesla faces big hurdles. The current product lineup has hit market saturation. Tesla needs a new, affordable vehicle to reignite delivery growth.”
Musk has promised a cheaper electric car model could debut later this year, which Tesla hopes will spark fresh demand.
Political controversies remain a cloud over Tesla’s brand. Musk’s latest spat with Trump — criticizing the president’s sweeping budget bill — prompted Trump to threaten retaliation against Musk’s companies, including Tesla. Those threats sent Tesla’s stock sliding more than 5% earlier this week.
Tesla’s strategy in recent months has shifted from rolling out new models to focusing on technological ambitions like robots, self-driving systems, and robotaxis capable of ferrying passengers without human drivers. The company is running a pilot robotaxi program in Austin, Texas, which has operated largely without incident but has drawn attention from federal safety regulators due to a handful of mishaps, including one incident caught on video showing a Tesla robotaxi driving into the wrong lane.
Competition is especially fierce in Europe, where Chinese automaker BYD has chipped away at Tesla’s market share. In May alone, Tesla’s sales slumped 28% across 30 European countries, even as Europe’s overall electric vehicle market continued to expand, according to the European Automobile Manufacturers’ Association.
Musk has admitted that his tenure as the head of the Department of Government Efficiency under Trump, combined with his vocal support for far-right candidates in Europe, has tarnished Tesla’s appeal for some buyers. Still, he attributes part of the sales decline to customers waiting for updated versions of the Model Y, Tesla’s top-selling vehicle.
Tesla is scheduled to report second-quarter financial results on July 23. Earlier this year, the company posted a staggering 71% drop in first-quarter net income.
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