Tesla Faces Challenges Amid Political Backlash and Stiff Competition

Tesla's first-quarter deliveries fell 13%, affected by CEO Elon Musk's political stance, aging vehicle lineup, and rising competition. The company delivered 336,681 vehicles, missing expectations of 372,410. As backlash grows against Musk's politics, protests and declining sales in key markets have added to Tesla's challenges.

Tesla's delivery numbers for the first quarter of the year suffered a 13% drop, largely attributed to backlash against CEO Elon Musk's political affiliations, growing market competition, and an aging lineup of electric vehicles. The company's shares reacted, falling over 4% in premarket trading.

In total, Tesla delivered 336,681 vehicles, significantly below the anticipated 372,410, as per an average estimate from analysts at Visible Alpha. This performance puts pressure on Tesla, while China's BYD is poised to take the lead in global EV sales with a 15.7% market share, surpassing Tesla's 15.3%.

Amidst these challenges, investors are keenly watching Tesla's efforts to revamp models such as the Model Y and implement incentives to counteract dwindling demand, particularly as competition intensifies from Chinese and European rivals. Additionally, recent launches and future plans to introduce a lower-priced vehicle are being closely monitored.

(With inputs from agencies.)