Tesla Inc.’s first-quarter vehicle deliveries fell far short of expectations, with the company delivering 336,681 vehicles, its worst quarterly total since 2022. Analyst Ryan Brinkman at JPMorgan Chase & Co. cited consumer backlash against CEO Elon Musk as a major factor in his revised estimate of Tesla’s earnings. The stock slumped over 44% from its record high on December 17.
Musk’s polarizing actions, including his intervention in global politics, have damaged the brand. He is expected to step back from his role leading the Department of Government Efficiency after his temporary adviser period ends, but will still maintain significant influence over federal cost-cutting efforts.
Tesla’s sales have been hit hard by Musk’s comments, with German sales plummeting 62% last quarter. The company’s only vehicle-assembly plant on the continent is located in Germany. This downturn has resulted in a revised estimate of Tesla’s first-quarter earnings, now expected to be 36 cents per share, short of previous projections.
The decline in sales and earnings has raised concerns about Musk’s impact on the company’s fortunes. As the CEO, he wields significant influence over Tesla’s direction and operations. However, his polarizing actions have alienated some customers, contributing to the company’s struggles.
Source: https://fortune.com/2025/04/04/tesla-estimates-cut-further-on-unprecedented-brand-damage-stock-musk-trump