Tesla Sales Tank as Elon Musk Boycott Gathers Steam

Key Takeaways

• Tesla reported disappointing quarterly earnings on April 11.
• The company delivered fewer vehicles compared to the same period last year.
• While there are macroeconomic factors behind the decline, a backlash against CEO Elon Musk could also be to blame.

When Tesla reported disappointing profits and revenues on Tuesday, April 22, it confirmed what analysts have been observing since January: the once-dominant electric vehicle company has suffered declining sales in 2025.

While some of the poor performance can be put down to wider challenges faced by the electric vehicle industry, CEO Elon Musk’s work with the department of government efficiency (DOGE) has also fueled a movement to boycott Tesla.

Tesla Q1 Earnings Drop

In the weeks running up to Tesla’s first quarter earnings announcement, investor sentiment turned bearish as internal deliveries numbers and national registration databases painted a dire picture of the company’s vehicle sales.

On earnings day, Tesla missed Wall Street expectations, despite analysts having downgraded their outlook significantly in the past month.

Compared to the same period last year, Tesla’s total automotive revenue fell 20%, its total revenue fell 9% and gross profit declined by 15%. Earnings per share fell by a massive 71%.

Protest Movement Goes International

Protests outside Tesla showrooms first occurred at the beginning of March and have taken place most weekends since then.

Although demonstrations were initially limited to the U.S., protestors have also gathered outside Tesla dealerships in London and Ottawa to voice their grievances.

Other forms of protest emerging in the U.K. include the appearance of billboards in London that parody Elon Musk’s recent controversy.

Meanwhile, the #boycottTesla hashtag is being used to call for divestment from the electric vehicle company.

Tesla’s Sales Crash

In the first quarter of 2025, Tesla delivered 336,681 vehicles, a 13% decrease compared to the same period in 2024.

Tesla sales have declined most notably in Europe.

Compared to 2024, the number of new Teslas registered in March declined by 61% in the Netherlands, 64% in Sweden, and 37% in France, an analysis by Elektrek found.

What’s Behind the Tesla Sales Slump?

People decide which car to buy for many reasons, and multiple factors are behind Tesla’s weak sales numbers.

A significant part of Tesla’s sales drop can be attributed to a global slowdown in sales that has affected the entire industry. S&P forecasters have observed that 2025 is shaping up to be “ultra-challenging” for automakers, with the EV sector especially facing headwinds.

However, the decline in Tesla sales is among the most dramatic, leading many to speculate that anti-Musk sentiment is to blame.

There is certainly evidence that existing Tesla owners want to distance themselves from the company’s CEO, such as the recent trend for bumper stickers with phrases like “I bought this before Elon was crazy.”

There are also a growing number of reports of Tesla owners selling their vehicles in protest.

Moreover, a recent survey of car buyers found that 60% said Musk’s controversial reputation would put them off buying a Tesla.

The Elon Musk Effect

European sales data point to a stronger decline in politically liberal countries.

This pattern can also be observed in the U.S. In an analysis of data from S&P Mobility, CNN found significant discrepancies between Tesla sales in red states versus blue states.

Between 2023 and 2024, in states where the majority of people voted for the Democratic candidate in the last four presidential elections, repeat buying, i.e., buying another Tesla after already owning one, dropped significantly.

In contrast, in states that reliably vote Republican, repeat buying increased slightly.