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Tesla records worst deliveries in two years amid Elon Musk backlash
Tesla's Q1 2024 deliveries plummeted to 336,681, its lowest in over two years, as CEO Elon Musk faces backlash for his political actions. Analysts expected 408,000 deliveries, but protests and declining sales in Europe and China, particularly after Musk's political endorsements, have dampened demand. Tesla aims to recover with new Model Y offerings and potential lower-cost models.
Key points
- Tesla reported 336,681 deliveries, below expectations of 408,000.
- Elon Musk's political involvement has led to consumer backlash affecting sales.
- Production numbers also fell to 362,615 due to a switch for Model Y refresh.
- European sales decreased, with a 49% drop year-over-year in the first two months; Germany saw a 76% decrease.
- In China, sales are down 11.5% year-over-year, facing stiff competition from BYD.
- Analysts downgraded projections for Tesla's performance as protests against Musk's politics continue.
Why it matters
- In 2025, sustainability and ethical leadership are critical trends in the auto industry.
- The rise of local competitors, such as BYD in China, reflects the shifting consumer preferences towards domestic brands.
- Political involvement and corporate responsibility are increasingly scrutinized as consumers demand more alignment between values and purchases.
The decline in Tesla's deliveries due to broader market dynamics and personal controversies surrounding Musk highlights the challenges facing the company as it navigates an evolving EV landscape amidst competitive pressures.