Tesla investors are bracing for a possible decline in global demand amid concerns over consumer backlash against CEO Elon Musk. The electric carmaker is set to release data on first-quarter deliveries, expected to show a 7% drop compared to the same period last year. This follows protests against Musk and Tesla’s showrooms globally.
Analysts have lowered their forecasts due to damage to the Tesla brand caused by Musk’s involvement in the Trump administration. Wedbush Securities’ Dan Ives expects deliveries of between 355,000 and 360,000, a decline from initial predictions of 400,000. The fall is partly attributed to brand damage associated with Musk.
Other issues affecting Tesla’s figures include consumers waiting for an update to the top-selling Model Y. The US market, Tesla’s biggest sector, has seen a decline in its Democrat owner group, from 40% during the Biden administration to 29%.
The introduction of a 25% tariff on foreign-made cars by President Trump is also expected to impact Tesla. Musk recently stated that the company is “not unscathed” by tariffs and warned about the “pure chaos” the global auto industry will face if it raises prices.
However, Trump expressed his indifference towards carmakers raising prices in response to tariffs, stating he hopes foreign carmakers will increase prices as it would lead to Americans buying American-made cars.
Source: https://www.theguardian.com/business/2025/mar/31/tesla-investors-brace-for-global-sales-data-amid-consumer-backlash-over-elon-musk