WEBDESK: Speculation about Elon Musk stepping down from his advisory role has sent shockwaves through the stock market, impacting Tesla’s sales and share prices. Recent reports highlight a significant slump in the company’s Q1 2025 sales, showing a 13% drop in deliveries compared to the previous year. This marks the largest sales decline in Tesla’s history.
The company delivered 336,681 vehicles in the first three months, down from nearly 387,000 in the same period last year.
Elon Musk, the influential CEO of Tesla, has faced increasing scrutiny, partly due to his controversial political involvement and the growing competition from other electric vehicle (EV) manufacturers, especially the Chinese company BYD. The speculation surrounding Musk’s potential exit briefly caused a surge in Tesla’s stock, but the effects were short-lived, as broader market challenges, such as tariffs and rising competition, continue to weigh on the company.
Sales in Europe dropped 49% in the first two months of the year, according to the European Automobile Manufacturers’ Association, even as overall EV sales on the continent rose. Analysts attribute the slump in part to Musk’s vocal support for far-right political parties in Germany and the UK.
In addition to these external factors, Tesla’s price cuts have not been enough to stem the drop in sales. As more competitors flood the EV market, Elon Musk faces mounting pressure to steer Tesla back to its former growth trajectory. Despite the challenges, many analysts believe that Tesla’s innovative technology and Musk’s leadership may still have the potential to turn things around.
The Politico report, citing insiders within President Donald Trump’s circle, suggested Musk could soon leave his position at the Department of Government Efficiency (DOGE), ending a high-profile 130-day stint as a special government employee.
A senior official confirmed to NBC News that Musk’s exit was being discussed, while Trump reportedly told Cabinet members that Musk would return to his private businesses. The news offered a brief reprieve to Tesla investors following weeks of losses.
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