Tesla News, the leading electric vehicle manufacturer, faced yet another setback on Thursday, March 20, 2025. The company’s stock plummeted by 8% following new controversies involving CEO Elon Musk. This marks the third consecutive quarter of declining value for the automaker, raising serious concerns among investors and industry analysts alike.
Delivery Numbers Drop Dramatically
Tesla’s first quarter deliveries for 2025 have fallen short of expectations. The company delivered only 382,000 vehicles worldwide, missing analyst predictions of 445,000 units. This represents a 12% decrease compared to the same period last year.
Industry expert Maria Johnson explained the situation: “Tesla is facing increased competition. Many traditional automakers now offer compelling electric options. But the recent controversies surrounding Musk have definitely accelerated customer hesitation.”
The drop in deliveries comes at a critical time. Tesla recently completed expansion of its Gigafactory in Austin, Texas. The facility was expected to boost production capacity by 30%.
Political Controversy Continues to Haunt Musk
The recent decline in Tesla’s performance coincides with growing backlash against Elon Musk’s political activities. Protests erupted outside Tesla’s Northern California facilities last week. Demonstrators criticized Musk’s close relationship with former president Donald Trump and his increasingly divisive political comments.
Sarah Williams, a protest organizer, shared her perspective: “Many Tesla owners bought these cars because they believed in a sustainable future. Now they feel betrayed by Musk’s support for politicians with poor environmental records.”
Social media campaigns urging consumers to boycott Tesla products have gained significant traction. The hashtag #TeslaBoycott has trended consistently throughout March.
Family Drama Adds to Tesla’s Troubles
Adding to the company’s woes, Musk’s estranged daughter recently made headlines by calling Tesla a “Ponzi scheme” in a viral social media post. She specifically cited the company’s unusually high price-to-earnings ratio as evidence of overvaluation. While financial experts have disputed these claims, the family drama has further damaged Tesla’s public image.
Manufacturing Challenges Persist
Beyond the controversy surrounding its CEO, Tesla continues to face fundamental business challenges. Quality control issues have plagued recent vehicle shipments. Customer complaints about panel gaps, paint quality, and software glitches have increased by 22% since December.
The company has also struggled with supply chain disruptions. A key battery component supplier in Asia halted deliveries last month due to contract disputes. Tesla engineers are reportedly working on alternative formulations, but solutions remain weeks away.
Competitors Gaining Ground
As Tesla grapples with these challenges, competitors are seizing the opportunity. Chinese manufacturer BYD reported record-breaking sales in February. European automakers like Volkswagen and Mercedes have successfully launched new electric models with favorable reviews.
The U.S. market has become particularly competitive. Ford’s electric F-150 Lightning outsold the Cybertruck in February, despite Tesla’s heavily promoted launch just months earlier.
Analyst Predictions
Wall Street remains divided on Tesla’s future prospects. Morgan Stanley analyst Thomas Chen maintains a “hold” rating but has lowered his price target. “We believe Tesla still has significant technological advantages. However, the combination of leadership controversy and manufacturing issues creates substantial near-term risk,” Chen wrote in his latest investor note.
Other analysts have taken more dramatic positions. Goldman Sachs downgraded Tesla to “sell” status on Tuesday, citing “leadership distraction” as a primary concern.
Looking Ahead
Despite these challenges, Tesla maintains ambitious plans. The company recently announced its next-generation affordable model, expected to retail around $25,000. Production is scheduled to begin in late 2025.
Tesla has also expanded its energy division. New solar roof installations increased 15% in the past quarter, providing some positive news amidst the controversy.
For now, investors and consumers alike are watching closely. The coming months will be crucial in determining whether Tesla can overcome both its CEO’s controversial behavior and its operational challenges.
FAQs About Tesla’s Recent Controversies
1. What caused Tesla’s stock to drop on March 20, 2025?
Tesla’s stock dropped 8% due to lower-than-expected delivery numbers and ongoing controversies surrounding CEO Elon Musk’s political activities. The company delivered only 382,000 vehicles in Q1 2025, missing analyst predictions by a significant margin.
2. How are Elon Musk’s political activities affecting Tesla?
Musk’s political comments and support for certain politicians have sparked protests and boycott campaigns against Tesla. Many customers who bought Tesla vehicles for environmental reasons feel betrayed by Musk’s alignment with figures perceived to have poor environmental records.
3. Is Tesla facing manufacturing problems?
Yes, Tesla continues to struggle with quality control issues including panel gaps, paint quality, and software glitches. Customer complaints about these issues have increased by 22% since December 2024. The company is also experiencing supply chain disruptions with battery components.
4. Who are Tesla’s main competitors in 2025?
Tesla faces increased competition from Chinese manufacturer BYD, which recently reported record sales. In the U.S. market, Ford’s electric F-150 Lightning outsold Tesla’s Cybertruck in February. European automakers like Volkswagen and Mercedes have also successfully launched competitive electric models.
5. What is Tesla doing to address these challenges?
Tesla is pursuing several strategies to overcome its challenges. The company has announced a next-generation affordable model expected to retail at $25,000, with production scheduled for late 2025. Tesla has also expanded its energy division, with solar roof installations increasing by 15% in the past quarter.
