Tesla CEO Elon Musk has expressed optimism about customer interest for his electric vehicles (EVs), despite evidence to the contrary. In a recent interview at the Qatar Economic Forum, Musk said that the stock’s near-all-time highs suggest good times are ahead and dismissed concerns over weak demand.
Musk claimed that Tesla has “already turned around” after weak deliveries in the first quarter, citing strong sales numbers and no problems with demand. He attributed any losses in sales to those on the left and gains from those on the right, saying the stock’s high valuation is a reflection of confidence in its AI and robotics plans.
However, analysts argue that Tesla’s valuation multiple is based more on confidence in its future plans rather than its car business. The company has lowered its EV sales predictions for 2024, with Musk initially predicting a 20-30% increase but later dropping the goal entirely.
Recent data suggests that Tesla may still face challenges in certain markets. In China, weekly data indicates a 24% decline in EV volumes in the second quarter, while in Europe, key markets like Germany saw EV demand jump by more than half in April, but Tesla’s sales plummeted by 46%.
Tesla’s cratering sales in some regions have led to speculation that Musk’s political activism may be affecting demand. The company has faced internal tensions over its CEO’s views, including the recent termination of a manager who spoke out against Musk’s actions.
Analysts now predict that Tesla will sell between 350,000 to 395,000 vehicles in Q2, a decline from last year’s 444,000 deliveries.
Source: https://fortune.com/2025/05/21/elon-musk-fears-tesla-demand-problem-denies-declining-sales