Tesla sales drop to lowest since 2022 amid Musk backlash

The deliveries underscore the challenge Tesla faces in reviving the flagging auto business that accounted for more than three-quarters of revenue last year.
Tesla sales drop to lowest since 2022 amid Musk backlash

In Ireland, Tesla sales so far this year are up 5% with 872 vehicles sold compared to 830 in the first three months of last year.

Tesla’s vehicle sales fell 13% last quarter to an almost three-year low, as the carmaker made over its most important model and dealt with international backlash against Elon Musk.

The company said Wednesday that it delivered 336,681 vehicles in the first three months of the year, its worst showing since the second quarter of 2022. Analysts on average were expecting the company to sell more than 390,000 cars and trucks.

The figures speak to the extent of the disruptions to Tesla’s business early this year. The company retooled factories around the globe to make the redesigned Model Y, leading to lost output that’s common when carmakers transition from one vehicle generation to the next. The extraordinary factor was Musk’s involvement in global politics that sparked protests across the US and Europe.

Investors were braced for a rough start to the year, both because of the Model Y transition and the first quarter tending to be the slowest for auto sales. But Tesla fared worse than many of its competitors.

In Europe, registrations plunged 43% in the first two months of the year, deviating from the 31% rise in industrywide EV sales. Wholesale shipments also tumbled in China, where domestic giant BYD pulled further ahead. BYD posted a 58% increase in first-quarter deliveries of its battery-electric and plug-in hybrid vehicles.

In Ireland, Tesla sales so far this year are up 5% with 872 vehicles sold compared to 830 in the first three months of last year. Despite the rise, data from the Society of Irish Motor Industry shows a sharp fall in March with sales dropping to 333 from 418 last March.

The deliveries underscore the challenge Tesla faces in reviving the flagging auto business that accounted for more than three-quarters of revenue last year.

Demonstrations have picked up in recent weeks in response to Musk asserting himself in Washington and beyond in support of far-right candidates and causes. The Tesla chief executive officer led President Donald Trump’s effort to shrink the federal workforce, weighed in on Germany’s federal election and called for the US to exit the transnational military alliance NATO.

Executives are increasingly staking Tesla’s future on artificial intelligence, autonomy and robotics, with plans to launch of a robotaxi service in Austin in June. The company also has said it will launch new, more affordable vehicles in the first half of the year, though it’s given few details.

Bloomberg

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