Tesla's Decline: Musk's Politics and Aging Lineup Trigger Sales Slump

Tesla's sales slid by 13% in the first quarter, amid an aging lineup and backlash over Elon Musk's political stance. The company's global deliveries were lower than expected, despite incentives. Analysts cite weak demand across key markets and political controversies as major challenges for the electric car giant.

In a notable setback for Tesla, the electric car manufacturer reported a 13% drop in global sales for the first three months of the year. This decline reflects challenges posed by an aging lineup and a backlash against Elon Musk's polarizing political views, which analysts say have impacted the brand's appeal.

Despite offering deep discounts and zero financing, Tesla delivered 336,681 vehicles globally in Q1, down from 387,000 units a year prior. Analysts, who had projected deliveries of around 408,000, cited soft demand in the U.S. and China along with increased competition and protests against Musk's right-wing affiliations as key factors.

Wall Street is now bracing for a potentially disappointing earnings report from Tesla, with its stock having halved since December. The market is closely watching the company's ability to navigate these controversies and growing competition, including from Chinese EV leaders like BYD.

(With inputs from agencies.)