On Monday, Tesla shares fell nearly 6 percent, with the stock down 44 percent year-over-year. Trump’s trade war is fueling large-scale selling and fears of a global economic slowdown. His 25 percent tariffs on foreign imports for the automotive sector are putting companies such as Tesla–headed by Musk who has been the president’s right-hand man for months and the current leader of the Department of Government Efficiency–in a bind.
According to Bloomberg estimates, Tesla is expected to report first-quarter sales of $21.57 billion, slightly higher than last year’s $21.3 billion. However, the automaker’s main concern is demand.
In early April, the company reported deliveries for the first 3 months of 2025 of 336,681 units, a number lower than the estimated 390,342. This is the worst quarter since 2022. Meanwhile, rival companies boosted their sales. According to industry insiders, Tesla’s numbers have dropped precipitously not only because of the tariffs affair, but also because of Elon Musk’s political, and economic, support for President Trump, which has generated controversy and protests not only in the States, but in different areas of the world.
On Sunday, Wedbush analyst Dan Ives called Tesla’s situation a “Code Red,” suggesting the world’s richest man leave DOGE to focus on the company’s business. Ives added: “Anyone that thinks the brand damage Musk has inflicted is not a real thing, spend some time speaking to car buyers in the US, Europe, and Asia. You will think differently after those discussions.”
Investors, for their part, are also eager to learn more about the development of a cheaper electric vehicle that the company has been publicizing for more than a year. Tesla has promised to launch a low-cost car in the first half of 2025, along with other new vehicles that top executives say will enable it to return to a 50 percent growth rate by 2023.
Finally, as for Musk, who is currently employed as a special federal official, he is expected to leave the government by the end of May, once the 130 days allowed by law for temporary assignments are over.
