NEW YORK — Tesla sales fell 13% in the first three months of the year, another sign that Elon Musk’s once high-flying car company is struggling to attract buyers.
The leading electric vehicle maker has faced a growing backlash from Musk’s embrace of right-wing politics and his role in the Trump administration. Opponents have staged protests at Tesla showrooms in the U.S. and in Europe, where the sales declines have been steeper.
Tesla’s line-up is aging, and some consumers may have held off from buying its bestselling Model Y while waiting for an updated version. The Austin, Texas, company also faces fierce competition from other EV makers offering vastly improved models, including those of China’s BYD.
Tesla reported deliveries of 336,681 globally in the January to March quarter. The figure was down from sales of 387,000 in the same period a year ago. The decline came despite deep discounts, zero financing and other incentives and could be a warning that the company’s first-quarter earnings report later this month could disappoint investors.
Dan Ives of Wedbush said Wall Street financial analysts knew the first quarter was likely bad, but turned out even worse than expected. He called the sales results a ‘’disaster on every metric.‘’
‘‘The brand crisis issues are clearly having a negative impact on Tesla...there is no debate,‘’ he said.
Musk has been President Donald Trump’s point man in his effort to cut government spending. As criticism of Musk mounted and Tesla’s sales and stock price slumped, Trump last month held an extraordinary press conference outside the White House in which he praised Tesla, blasted boycotts against the company and bought a Tesla himself while TV cameras rolled.
Tesla investors have complained Musk’s work at the Department of Government Efficiency has diverted his focus from running Tesla. On Tuesday, New York City’s comptroller overseeing pension funds holding Tesla stock called for a lawsuit accusing a distracted Musk of ‘’driving Tesla off a financial cliff.‘’
