Elon Musk has acknowledged that his work with President Donald Trump’s Department of Government Efficiency cost-cutting task force has led to a decline in Tesla sales. The company saw a 9% year-over-year decline in sales and a 71% decrease in profits during the first quarter.
Musk, Tesla’s CEO, stated that the company is not on the “ragged edge of death” despite facing challenges. He remains optimistic about Tesla’s future, citing its dominance in the U.S. market for electric vehicles (EVs) as a positive aspect.
However, experts warn that competition from other EV manufacturers, such as Chinese EV maker BYD, and concerns over aging model lines could impact Tesla’s sales. Sean Tucker, lead editor for Kelley Blue Book, noted that Tesla’s sales peaked in February 2023 and have been declining since then.
Tucker also mentioned the impact of Musk’s work on Dogecoin (DOGE), which has tarnished Tesla’s brand among environmentally conscious consumers who view EVs as a green alternative. However, experts believe Musk’s unique ability to create a sense of urgency could help revive Tesla.
A rumored sub-$30,000 model is another factor that could influence Tesla’s sales. Tucker stated that even a cheaper model might not be enough to regain Tesla’s former heights, citing concerns over prices, charging infrastructure, and range as major obstacles for potential EV buyers.
The overall EV market is growing but at a slower rate, with higher prices and lower adoption rates. Musk’s diversification into other ventures, such as selling automation software, may also affect Tesla’s focus on building cars.
Despite these challenges, Musk aims to scale back his DOGE activities and redirect his attention to Tesla. With the company’s dominance in the U.S. market and a potential new model, Tesla may be able to weather the storm and regain its position in the EV market.
Source: https://katu.com/news/nation-world