Tesla has faced significant challenges in its sales performance throughout the year, leading to declines that have unsettled investors and impacted the company’s stock price. Early in the year, reports highlighted alarming trends in key markets. In February, sales in Europe plummeted by an astonishing 45% compared to the same period last year, triggering an 8% drop in stock value in a single trading day.
March continued the troubling trend with data showing that Tesla sold only 30,688 electric vehicles (EVs) in China during the previous month. This represented a staggering 49% decline year-over-year, causing the stock to nosedive by 18% over the span of just six days, from March 4 to March 10.
April brought additional disappointing figures, as Tesla disclosed that it delivered 336,700 EVs in the first quarter, marking a 13% decrease from the same quarter the prior year. During this time, the company’s stock dropped 41% from April 2, hitting a low on April 8. This downward trend was exacerbated by broader market pressures and concerns over economic policies, including tariffs imposed during the Trump administration.
The second quarter saw a slight uptick in delivery numbers, with Tesla reporting 389,400 vehicles delivered. However, this also translated to a 13.5% decline year-over-year. Despite this drop, the stock experienced a temporary boost, buoyed by a broader rally in the market. Nevertheless, this was short-lived as the company later announced revenue of $22.5 billion, marking its largest year-over-year decline in a decade.
Amid these struggles, there has been growing concern regarding Elon Musk’s involvement in U.S. political matters, which some investors believe has detracted from his focus on Tesla. As demand for Teslas continues to wane, shareholders are increasingly urging Musk to redirect his attention back to the automotive sector to help stabilize and revitalize the company’s sales and stock performance.
