Tesla’s stock took a hit on Friday, dropping approximately 5% to $267.79 per share on the New York Stock Exchange, amid growing investor concerns and global anti-Tesla protests. The stock initially opened at $282.76 per share but faced a steady decline throughout the trading day, touching an intraday low of $264 and peaking at $276.30.
The drop follows Tesla’s announcement that it experienced a significant slump in sales, marking a 13% decline in deliveries during the first quarter. In contrast, its main competitor, BYD, saw a 60% increase in revenue during the same period.
Tesla revealed that it had delivered 336,681 vehicles in Q1, a reduction of 50,000 units compared to the same quarter the previous year. This marks Tesla’s worst sales performance in nearly three years. Meanwhile, BYD, which has consistently surpassed Tesla in electric vehicle (EV) sales in recent quarters, is on track to potentially overtake Tesla in full-year sales by 2025 if current trends continue.
Despite the setback, Tesla remains a strong contender in the EV market and continues to outperform many of its traditional automotive rivals. Analysts are closely monitoring how the company will fare in the wake of shifting trade policies and market conditions.
The uncertainty surrounding tariffs has only added to the volatility. However, Tesla’s diversified global manufacturing capabilities, particularly in Shanghai, Berlin, and Austin, could help cushion the impact of potential tariffs. These regional factories reduce Tesla’s reliance on imports and provide a competitive advantage in a changing trade landscape.
Tesla has also made significant strides in improving its production efficiency and battery technology, reinforcing its position as a leader in the green energy sector. The company’s focus on sustainability and its strong market presence have helped it maintain investor interest despite broader market downturns.
Over the weekend, anti-Tesla protests erupted around the world, targeting Tesla showrooms to protest CEO Elon Musk’s political views, particularly his support for former President Donald Trump. While these protests are focused on Musk’s politics, protesters made it clear that their opposition is not aimed at the electric vehicles themselves.
In Europe, Tesla’s sales have been hit by a wave of anti-Musk sentiment, contributing to a sharp decline in registrations. For example, French car registrations plummeted by 14.54% in March, with Tesla’s sales falling by 36.83%.
On the product front, Tesla unveiled a new Model 3 Performance trim, featuring enhanced engineering and manufacturing upgrades for improved performance. The company also introduced a new Super Manifold V2 in the Model Y, designed to optimize the vehicle’s heat pump system.
Speculation surrounding Elon Musk’s potential departure from his advisory role within the Trump administration has fueled further uncertainty. If Musk were to leave, it could lead to short-term volatility in Tesla’s stock, although it may also offer an opportunity for the company to refocus its efforts and improve its operations. In the face of a turbulent global trade environment, all eyes are on Tesla to see how it navigates the challenges ahead.
