Tesla Sales Slump as Pressure Piles on Musk

AFP/APP

New York: Tesla’s worldwide sales tumbled in the first quarter, piling further pressure on CEO Elon Musk, who faces a growing backlash for his role in overseeing US federal spending cuts under President Donald Trump.

Musk’s electric vehicle company delivered 336,681 autos globally in the first three months of 2025, marking a 13 percent decline, figures showed Wednesday.

The quarterly figures were the lowest in nearly three years and lagged analyst expectations, as Tesla pointed to the “loss of several weeks of production” while ramping up upgrades for its Model Y output.

Tesla shares initially fell more than six percent, but they bounced following a news report that Trump will soon scale back Musk’s involvement in his administration.

Musk, the world’s richest person, donated more than $270 million to Trump’s 2024 presidential campaign. Trump tasked Musk with leading the “Department of Government Efficiency” (DOGE), which has slashed the federal workforce and moved to shut down swaths of the US government.