Tesla, a pioneer in electric vehicles, has seen its sales numbers continue to drop in recent months, adding up to a tough start to 2025.
Bloomberg reported that Tesla sales have fallen drastically across Europe this year, including a 71% drop in Germany over January and February. In China, February sales numbers fell by 49% to the lowest number since mid-2022.
And in the first quarter of the year, the company delivered 336,681 vehicles, a 13% decline from the same period in 2024.
The company's stock price has also taken a hit during this time. From the start of 2019 through the end of 2024, it was one of the best investments that a person could make, increasing from roughly $20 per share to more than $400. But in the first three months of 2025, it lost about half of its value at one point and has continued to trade far below its 52-week high.
The company's founder and CEO, Elon Musk, has never shied away from the spotlight, but has become an even more polarizing figure of late with his involvement in the U.S. government and global politics. That involvement has primarily involved cutting government programs and jobs, including public calls to eliminate major chunks of Social Security and Medicare entitlements, which has all seemed to contribute to the reasons behind protests and vandalism at Tesla facilities.
But while Musk's political leanings may be to blame for some of the dip, it's not the only reason.
Tesla sales started declining well before Musk joined the Trump administration. Kelley Blue Book data shows that the company sold 60,325 vehicles in February 2023, but have not crossed the 60,000 mark since.
"Barring a major strategy change," a KBB analysis says, "they may never do so again."
In some ways, the company has become a victim of its own success. Tesla proved the popularity and viability of electric vehicles, which paved the way for other automakers to enter the space. Thus, while Tesla's sales have dipped, overall EV sales have never been higher — so the market share Tesla had may never have been sustainable.
In 2024, 1.3 million EVs were sold in the U.S., the highest total ever and an increase of more than 7% over 2023, according to Cox Automotive.
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Elon is the man 🥰 The number of Teslas being traded in is also on the rise, with them accounting for 1.4% of all vehicles traded in from March 1-15.
Musk has said new vehicles, including some cheaper options, should enter production this year, which the company hopes will boost sagging sales.
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