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It’s hard to think of a company that is off to a worse start for the trading year than Tesla (TSLA) . Yes, there are other companies whose share prices have declined further, but the former electric vehicle (EV) leader has struggled for a unique reason.
CEO Elon Musk has been highly preoccupied with his new position at the so-called Department of Government Efficiency (DOGE), leaving investors to wonder about Tesla’s future. As share prices have fallen, experts have expressed concern and called for him to step down.
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Despite some recent momentum, Tesla stock is falling again following the U.S. government’s tariff announcement on April 2. Those tariffs cast significant uncertainty over the U.S. economy, which is bad news for Tesla and most of its peers.
Analysts suggest Tesla is in deep trouble
For months, Tesla has faced growing concern from investors as reports of declining European sales have gained traction. Some experts wrote this off by speculating that the European market is not as important to Tesla as the U.S. or China.
While that may be true, Tesla's problems are by no means confined to Europe. Its Q1 delivery statistics are in, and while expectations were low, the numbers are even worse than many experts feared.
Related: Tesla Q1 deliveries tumble as Elon Musk's political role hammers sales
“Tesla delivered 336,681 new cars in Q1, down 13% from last year's tally of 386,810 and 32% from the record 495,570 reached over the final three months of last year,” reports TheStreet. “Analysts' forecasts for deliveries ranged from 340,000 to around 380,000, with Visible Alpha data pegging the March-quarter target at around 373,000.”
And those estimates had already been lowered over the past few months.
When TSLA stock surged on post-election momentum from Musk’s close proximity to President Donald Trump, analysts forecasted that the company’s Q1 deliveries would be in the range of 470,000.
Following Tesla's disappointing Q1 deliveries, Deutsche Bank (DB) released a note that attributed the major miss to concerningly low U.S. sales.
The analysts state that they already factored in the company’s weak sales in Europe, suggesting the recent downside is because of the U.S. Per Sherwood News:
“Monthly sales data had shown that in the first two months of 2025, sales were roughly flat in the US, Tesla’s main market, while they fell in Europe and China. That must have taken a turn for the worse in March, when in response to CEO Elon Musk’s actions at DOGE, protestors picketed at hundreds of Tesla locations around the country and Tesla owners rushed to sell their vehicles.”