The future of Tesla's sales appears uncertain to investors because Elon Musk's political involvement along with ongoing controversies negatively affect the brand reputation of the company. The company experienced its very first annual decrease in sales for 2024 which raised doubts about its growth potential.

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The recent 13% decline in quarterly deliveries stands as Tesla's weakest performance in almost three years because customers boycotted the company due to Musk's connections with Trump's administration and backing of European right-wing groups.

The recent deterioration of brand reputation shows its strength as the main factor leading to Tesla's poor delivery results this quarter according to Gene Munster who serves as managing partner at Deepwater Asset Management. The analyst predicts Tesla will see 9% fewer deliveries in 2025 than during the previous year.

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The company confronts industry competition from BYD among other factors along with aging automobile models and opposition from political circles. Customers and analysts closely observe the Model Y refresh launched in China during late February to assess possible sales effects.

The analysts at Deutsche Bank expect Tesla will minimize profit margins to boost 2025 delivery numbers through financial arrangement incentives. A planned cheap Tesla model holds essential value for future business expansion because the company has not yet announced specifications.

Gary Black from Tesla shareholder The Future Fund predicts the delivery and profit performance of Tesla will decrease dramatically during 2025 as a budget version of an existing design will not interest new buyers.

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Musk's role in the Trump administration's Department of Government Efficiency (DOGE) that managed federal budget cuts caused public criticism. The public backlash against Tesla continues to escalate leading demonstrators to conduct vandalistic attacks on their showrooms while also starting boycott campaigns against the company.

Wedbush analyst Dan Ives cautioned that Musk's continued involvement at DOGE poses a risk of "permanent brand damage" to Tesla. Politico reported that Musk plans to step down from the DOGE role sooner than expected, though the White House has not confirmed this.

The combination of political backlash, increased competition, and potential tariff-related cost increases has created a challenging environment for Tesla, leaving investors concerned about the company's ability to regain its growth momentum.