During the first quarter of this year, Tesla sales dropped by 13%, falling to their lowest levels since 2022. The first quarter reports come as Tesla CEO Elon Musk faces backlash for his involvement in the Trump administration and as numerous media outlets began reporting that Musk is stepping back from his government role.
"The president remains pleased with Musk and his Department of Government Efficiency initiative, but both men have decided in recent days that it will soon be time for Musk to return to his businesses and take on a supporting role, according to three Trump insiders who were granted anonymity to describe the evolving relationship," Politico reported.
This comes amid news that Tesla reported 336,000 vehicle deliveries from January to March, a dip from sales of 387,000 compared to the same quarter last year. On top of that, the numbers are the worst Tesla has had since 2022 and far below analyst predictions of 408,000 deliveries.
Tesla’s stock has also fallen nearly 50% since late December, as many have begun protesting the electric vehicle maker over Musk’s work with the Department of Government Efficiency.
Politico also noted that while Musk will return to his businesses, he will slide into a supporting role with the administration.
Across the country, protests have popped up at Tesla showrooms and service centers. While a majority have been peaceful, some violence has also taken place against Tesla.
Last month, the Las Vegas Metropolitan Police Department found at least five Teslas that had been damaged by fire and gunshots at a Tesla Collision Center. The word “RESIST” was also spray painted in capital letters on the center’s front doors.
The Associated Press also recently reported that an Oregon man was arrested after being accused of throwing Molotov cocktails at a Tesla store in Salem.
Musk has responded to the violence, sharing that things are getting out of hand on his social media site X.
“This level of violence is insane and deeply wrong,” Musk wrote on X. “Tesla just makes electric cars and has done nothing to deserve these evil attacks.”
As for the consumer protests, analysts with Wedbush Securities shared in a note on Wednesday that the quarterly report is a “disaster on every metric.” They added that it may be considered a “fork in the road moment” for the company’s CEO.
“The more political he gets with DOGE, the more the brand suffers, there is no debate. This quarter was an example of the damage Musk is causing Tesla,” the analysts wrote.
Musk has remarked that he’s faced “great difficulty” in running his companies and working with the Trump administration.