NEW YORK (AP) — Tesla sales fell 13% in the first three months of the year, another sign that Elon Musk’s once high-flying car company is struggling to attract buyers.
The leading electric vehicle maker has faced a growing backlash from Musk’s embrace of right-wing politics and his role in the Trump administration. Opponents have staged protests at Tesla showrooms in the U.S. and in Europe, where the sales declines have been steeper.
Tesla’s line-up is aging, and some consumers may have held off from buying its bestselling Model Y while waiting for an updated version. The Austin, Texas, company also faces fierce competition from other EV makers offering vastly improved models, including those of China’s BYD.
Tesla reported deliveries of 336,681 globally in the January to March quarter. The figure was down from sales of 387,000 in the same period a year ago. The decline came despite deep discounts, zero financing and other incentives and could be a warning that the company’s first-quarter earnings report later this month could disappoint investors.
Dan Ives of Wedbush said Wall Street financial analysts knew the first quarter was likely bad, but turned out even worse than expected. He called the sales results a “disaster on every metric.”
“The brand crisis issues are clearly having a negative impact on Tesla...there is no debate,” he said.
Musk has been President Donald Trump’s point man in his effort to cut government spending. As criticism of Musk mounted and Tesla’s sales and stock price slumped, Trump last month held an extraordinary press conference outside the White House in which he praised Tesla, blasted boycotts against the company and bought a Tesla himself while TV cameras rolled.
Tesla investors have complained Musk's work at the Department of Government Efficiency has diverted his focus from running Tesla. On Tuesday, New York City’s comptroller overseeing pension funds holding Tesla stock called for a lawsuit accusing a distracted Musk of “driving Tesla off a financial cliff.”
After falling as much as 6% in early Wednesday, Tesla stock shot up more than 5% on indications that Musk may soon return his attention to Tesla. Politico, citing anonymous sources, reported Trump has told Cabinet members that Musk will step back from his role at DOGE in coming weeks.
Tesla’s stock has plunged by roughly half since hitting a mid-December record as expectations of a lighter regulatory touch and big profits with Donald Trump as president were replaced by fear that the boycott of Musk's cars and other problems could hit the company hard. Analysts are still not sure exactly how much the fall in sales is due to the protests or other factors.
Still, even bullish financial analysts who earlier downplayed the backlash to Musk’s polarizing political stances are saying it is hurting the company, something that Musk also recently acknowledged.
“This is a very expensive job,” Musk said at a Wisconsin rally on Sunday, referring to his DOGE role. “My Tesla stock and the stock of everyone who holds Tesla has gone roughly in half."
Tesla cars have been smashed and set on fire in recent weeks, and protests have been staged at hundreds of Tesla dealerships. Owners have put bumper stickers on their cars saying, “I bought this before Elon went crazy.”
Europeans have also balked at buying Tesla, especially Germans upset after Musk publicly supported a far-right party in national elections and gave what many say was a Nazi-like salute at a Trump inauguration rally in January.
Tesla is expected to report earnings of 48 cents per share for the first quarter later this month, up 7% from a year earlier, according to a survey of financial analysts by research firm FactSet.
Nearly all of Tesla’s sales in the quarter came from the smaller and less-expensive Models 3 and Y, with the company selling less than 13,000 more expensive models, which include X and S as well as the Cybertruck.
AP Business Writer Michelle Chapman contributed to this report from New York.
Officers from Ottawa Police Service (OPS) are seen at a Tesla Service and Showroom centre after it was damaged with pink spray paint in Ottawa, on Monday, March 31, 2025. (Spencer Colby/The Canadian Press via AP)
President Donald Trump remained defiant Monday as global markets continued plunging after his tariff announcement last week.
Trump has insisted his tariffs are necessary to rebalance global trade and rebuild domestic manufacturing. He's singled out China as “the biggest abuser of them all” and criticized Beijing for increasing its own tariffs in retaliation.
Here's the latest:
Wilmer Escaray left Venezuela in 2007 and enrolled at Miami Dade College, opening his first restaurant six years later.
Today, he has a dozen businesses that hire Venezuelan migrants like he once was, workers who are now terrified by what could be the end of their legal shield from deportation.
Since the start of February, the Trump administration has ended two federal programs that together allowed more 700,000 Venezuelans to live and work legally in the U.S. along with hundreds of thousands of Cubans, Haitians and Nicaraguans.
In the largest Venezuelan community in the United States, people dread what could face them if lawsuits that aim to stop the government fail. It’s all anyone discusses in “Little Venezuela” or “Doralzuela,” a city of 80,000 people surrounded by Miami sprawl, freeways and the Florida Everglades.
▶ Read more about fears in Miami’s ‘Little Venezuela’
The Monday meeting will make Netanyahu the first foreign leader to visit Trump since he unleashed tariffs on countries around the world.
Whether Netanyahu’s visit succeeds in bringing down or eliminating Israel’s tariffs remains to be seen, but how it plays out could set the stage for how other world leaders try to address the new tariffs.
Netanyahu’s office has put the focus of his hastily organized Washington visit on the tariffs, while stressing that the two leaders will discuss major geopolitical issues including the war in Gaza, tensions with Iran, Israel-Turkey ties and the International Criminal Court, which issued an arrest warrant against the Israeli leader last year. Trump in February signed an executive order imposing sanctions on the ICC over its investigations of Israel.
▶ Read more about Trump’s meeting with Netanyahu
The stock market briefly spiked on a report that Kevin Hassett, a top White House economic adviser, said the president was considering a 90-day pause on tariffs.
The supposed remark from Hassett circulated on social media, but no one could pinpoint where it came from even as the market flashed from red to green.
Hassett had spoken to Fox News earlier in the morning, when he was asked about a potential pause. However, he was noncommittal.
“I think the president is going to decide what the president is going to decide,” he said.
▶ Read more updates on the financial markets
Vance’s mother, Beverly Aikins’ on Friday received a 10-year sobriety medallion in the Roosevelt Room at a ceremony with friends and family.
Vance described Aikins’ past drug addiction in his bestselling book “Hillbilly Elegy.”
The cases are likely headed to a Supreme Court showdown on the president’s power over independent agencies.
A divided U.S. Court of Appeals for the District of Columbia Circuit issued the ruling in the lawsuits separately brought by Merit Systems Protection Board member Cathy Harris and National Labor Relations Board member Gwynne Wilcox.
The ruling reverses, at least for now, a judgement from a three-judge panel from the same appellate court.
▶ Read more about Trump and the board members
The dispute over tariffs has caused some fracturing within Trump’s political coalition.
Hedge fund manager Bill Ackman said the president was “launching a global economic war against the whole world at once” and urged him to “call a time out.”
“We are heading for a self-induced, economic nuclear winter,” he wrote on X on Sunday.
Top White House economic adviser Kevin Hassett told Fox News on Monday morning that Ackman should “ease off the rhetoric a little bit.”
Hassett said critics were exaggerating the impact of trade disputes and talk of an “economic nuclear winter” was “completely irresponsible rhetoric.”
The president showed no interest in changing course despite turmoil in global markets.
He said other countries had been “taking advantage of the Good OL’ USA” on international trade.
“Our past ‘leaders’ are to blame for allowing this, and so much else, to happen to our Country,” he wrote on Truth Social. “MAKE AMERICA GREAT AGAIN!”
Trump criticized China for increasing its own tariffs and “not acknowledging my warning for abusing countries not to retaliate.”
On a day when stock markets around the world dropped precipitously, Alabama Republican Party Chairman John Wahl led a celebration of the president whose global tariffs sparked the sell-off.
With no mention of the Wall Street roller coaster and global economic uncertainty, Wahl declared his state GOP’s “Trump Victory Dinner” — and the broader national moment — a triumph. And for anyone who rejects Trump, his agenda and the “America First” army that backs it all, Wahl had an offer: “The Alabama Republican Party will buy them a plane ticket to any country in the world they want to go to.”
Wahl’s audience — an assembly of lobbyists and donors, state lawmakers, local party officials and grassroots activists — laughed, applauded and sometimes roared throughout last week’s gala in downtown Birmingham.
Yet beyond the cheerleading, there were signs of a more cautious optimism and some worried whispers over Trump’s sweeping tariffs, the particulars of his deportation policy and the aggressive slashing by his Department of Government Efficiency.
▶ Read more about Trump’s support in Alabama
This morning, at 11 a.m., World Series Champions, the Los Angeles Dodgers, will visit the White House and meet the president. Later, at 1 p.m., Israel Prime Minister Benjamin Netanyahu will visit the White House and meet with Trump. At 2 p.m., Netanyahu and Trump will participate in a Bilateral Meeting in the Oval Office. At 2:30 p.m., they will hold a joint news conference.
Trump said Sunday that he won’t back down on his sweeping tariffs on imports from most of the world unless countries even out their trade with the U.S.
Speaking to reporters aboard Air Force One, Trump said he didn’t want global markets to fall, but also that he wasn’t concerned about the massive sell-off either, adding, “sometimes you have to take medicine to fix something.”
His comments came as global financial markets appeared on track to continue sharp declines once trading resumes Monday, and after Trump’s aides sought to soothe market concerns by saying more than 50 nations had reached out about launching negotiations to lift the tariffs.
The higher rates are set to be collected beginning Wednesday. Treasury Secretary Scott Bessent said unfair trade practices are not “the kind of thing you can negotiate away in days or weeks.” The United States, he said, must see “what the countries offer and whether it’s believable.”
▶ Read more about the global impact of Trump’s tariffs
Pedestrian are reflected on a brokerage house's window as an electronic board displays shares trading index, in Beijing, Monday, April 7, 2025. (AP Photo/Andy Wong)
Shipping containers are stored at Bensenville intermodal terminal in Franklin Park, Ill., Sunday, April 6, 2025. (AP Photo/Nam Y. Huh)
President Donald Trump arrives at the White House on Marine One, Sunday, April 6, 2025, in Washington. (AP Photo/Manuel Balce Ceneta)
