Tesla's Tumultuous Quarter: Sales Slump Amid Musk's Political Fallout

Tesla's first-quarter sales plunged by 13% due to CEO Elon Musk's political involvement and outdated vehicle lineup. The backlash led to protests, vandalism, and customer departures, causing a significant drop in sales. Share prices fell, and competition from China's BYD threatens Tesla's leading position in the EV market.

Tesla has reported a 13% decline in first-quarter sales, marking its weakest performance in almost three years. This downturn coincides with growing consumer backlash against CEO Elon Musk's political activities and stagnant vehicle offerings. Rival electric-vehicle manufacturers have benefited from this, capturing the attention of buyers seeking newer models.

The company's decision not to refresh its lineup and Musk's foray into U.S. and European politics have sparked global protests and vandalism at Tesla dealerships. Many Tesla owners are dissociating themselves from the brand, while investors express disappointment over underwhelming sales figures.

Tesla's challenges are further compounded by BYD, a Chinese competitor, poised to surpass it as the world's top EV seller. The company has introduced refreshed models like the Model Y to regain market traction and announced plans for a lower-cost vehicle to compete in the evolving market landscape.

(With inputs from agencies.)