Tesla Reports Worst Quarterly Vehicle Deliveries Since 2022—Evidence Of Elon Musk’s DOGE ‘Damage,’ Analyst Says

Topline

Tesla disclosed Wednesday the most tangible data point yet showing the impact to its business from the polarizing activities of its chief executive officer and largest shareholder Elon Musk, whose close relationship with President Donald Trump led many on Wall Street to warn about “woes” for the electric vehicle maker.

Key Facts

Crucial Quote

The weakening of sales follows reports Tesla sales declined dramatically across the world at the start of the year, most notably in the European Union tied to Musk and Trump’s targeting of the bloc and China, where Tesla faces increasingly stiff competition. “We struggle to think of anything analogous in the history of the automotive industry, in which a brand has lost so much value so quickly,” JPMorgan analyst Ryan Brinkman wrote in a March 12 note to clients, referring to the backlash against Musk, who donated $288 million toward Republican causes last year, spurning widespread protests and vandalism of Tesla vehicles nationwide.

Big Number

29%. That’s how much Tesla stock is down since Jan. 2, the date of the company’s last quarterly delivery report, even after Tuesday’s bounce. Musk said Sunday the slide is a “big deal” and is a result of “massive pressure on me, and Tesla I guess, to you know, I don’t know, stop” with his White House role and outspoken support of right-wing political parties globally. The stock is down more than 40% from its all-time high set in December as investors speculated lax regulation from the Trump administration could help unlock the company’s autonomous driving initiative. Tesla and the broader market have both swung wildly in recent weeks as Trump plans to brandish his most severe tariffs yet Wednesday. Musk is arguably the most powerful person in the Trump administration other than the president, but tariffs are a major headwind for Tesla, as the automaker sources its parts globally and brings in more than half of its revenue abroad.

Chief Critic

“Tesla's softer auto deliveries are emblematic of a company in the transition from an automotive 'pure play' to a highly diversified play on AI and robotics,” explained Morgan Stanley analyst Adam Jonas last week, laying out the case Tesla stock can still surge despite the likely softness in its core electric vehicle business.

Forbes Valuation

Musk is by far the richest person in the world with a $346 billion net worth, according to our latest calculations.

Further Reading