The Trump administration’s support for Tesla may be backfiring on the electric car company.
And there are signs it could get worse.
Tesla posted a far steeper than expected decline in first-quarter deliveries Wednesday, a sign that CEO Elon Musk’s political activities are hitting the company’s fortunes. The manufacturer announced it had delivered 336,681 electric vehicles globally, a decline of about 13 percent from the same period last year and a result that fell below even pessimistic Wall Street forecasts.
The drop came on the heels of declining Tesla sales in Europe, surging U.S. sales by rival EV-makers, and widespread protests among liberals because of the work that Musk has done for President Donald Trump and his agenda. On Wednesday, Wall Street analysts largely blamed Musk’s role with the Trump administration for Tesla’s newest troubles, even as the company attributed the decline to production issues with its popular Model Y.
