Tesla's sales have taken a significant hit, dropping 13% year-over-year in the first quarter of 2025, amid growing concerns about Elon Musk's stewardship of the company. The electric automaker reported a total production of 362,615 vehicles, including 345,454 Model 3 and Model Y vehicles, and 17,161 "other vehicles," which includes the Model S, Model X, and Cybertruck. Deliveries also fell, with a total of 336,681 vehicles, including 323,800 Model 3 and Model Y vehicles and 12,881 other vehicles, marking a 12.9% decline compared to Q1 2024.

The decline in sales is attributed to a combination of factors, including the production changeover for the refreshed Model Y, which has just started making its way to customers. However, the company's problems extend beyond just production issues. Tesla's stock price has shed nearly 36% of its value since the beginning of the year, wiping out nearly $460 billion from the company's market cap and shaving over $100 billion from Elon Musk's net worth.

The company's troubles are partly due to Musk's position with the Department of Government Efficiency, or DOGE, a controversial effort aimed at cutting "waste and fraud" in the government. Musk has also been criticized for amplifying racist theories on social media and making a fascist salute during Trump's inauguration. These actions have sparked a nationwide protest movement called Tesla Takedown, aimed at boycotting the company and driving down its stock price.

The protests have been successful in persuading many progressive Tesla owners to sell their vehicles, despite steep drops in used car values. Additionally, there have been an unrelated spate of violent attacks on Tesla stores and vehicles around the world, including arson and vandalism. A fire at a showroom in Rome resulted in 17 cars being destroyed. President Donald Trump has said suspects caught defacing Tesla vehicles would be charged with "domestic terrorism."

Meanwhile, other automakers are reporting brisk sales of their own electric vehicles. General Motors, for example, reported nearly 32,000 EVs sold in the first quarter, roughly doubling its figure year over year. This raises questions about Tesla's ability to maintain its market share in the face of growing competition.

Musk is pinning his hopes on AI, robotics, and self-driving cars, which he argues will propel Tesla to new financial heights. He claims the company will launch an "unsupervised" robotaxi pilot in Austin, Texas, in June. However, experts have questioned Tesla's approach to autonomous driving, pointing to dozens of fatal crashes that have occurred involving the company's partially automated features.

Musk has also promised to introduce a new, lower-cost model sometime this year, but has yet to reveal any details about that vehicle. As Tesla struggles to regain its footing, it remains to be seen whether the company can overcome its current challenges and regain its position as a leader in the electric vehicle market.

The decline in Tesla's sales and stock price has significant implications for the company's future and the broader electric vehicle market. As the industry continues to evolve, it will be important to watch how Tesla responds to these challenges and whether it can regain its momentum in the face of growing competition and controversy.