Tesla, the electric car maker, just had its worst sales drop ever. In the first three months of this year, sales fell by 13%. This means 50, 000 fewer cars were sold compared to the same time last year. To put it simply, Tesla delivered 336, 681 cars in this quarter. This is the biggest drop the company has seen in nearly three years. The company did not mention protests or vandalism in its sales report. Instead, it talked about a update to the Model Y that temporarily stopped production at all four of its factories for a few weeks.

The drop in sales is a big deal for Tesla. Until recently, the company was always growing, with sales increasing by 20% to 100% every quarter. This growth helped Tesla's stock price soar. But last year, Tesla had its first annual sales decline, and this quarter, the drop was even worse than expected. Analysts had forecasted sales as low as 350, 000, but the actual number was lower. Tesla's stock price has also taken a hit, falling 44% from its high in December. After the sales report, shares fell about 2% in early trading. But later, they rebounded after news that Musk might step back from his role in the Trump administration.

Musk's actions and statements outside of Tesla are hurting the company. He has a high profile and often makes confrontational statements on social media. This has made him a target for people who disagree with the Trump administration's policies. A poll last month found that only 35% of Americans view Musk positively, while 53% view him negatively. This negative view of Musk is affecting Tesla's sales, especially among liberals who are interested in green electric vehicles.

Tesla is also facing tough competition, especially from Chinese automakers like BYD. BYD reported sales of over 416, 000 electric vehicles in the quarter, a 39% increase from last year. BYD has overtaken Tesla as the world's largest seller of electric vehicles for a number of quarters. BYD's cars are generally less expensive than Tesla's, and they have other advantages too. For example, BYD recently unveiled a charging system that gives its latest model 250 miles of range after just five minutes of charging. Despite the competition, BYD and most other Chinese EV makers do not have a presence in the US market.

Tesla's sales also fell 49% in Europe in the first two months of the quarter, even as electric vehicle sales overall grew 28% on the continent. This could be due to opposition to Musk in Europe, thanks to his support of far-right political parties in Germany and the United Kingdom. But even without the political controversy, Tesla is facing challenges due to growing competition from other automakers.

Tesla's Electric Car Sales Hit a Speed Bump

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