Summary

Tesla faces a second consecutive year of sales decline after a 13% drop in Q1 2024 deliveries, the steepest in nearly three years.

CEO Elon Musk’s alignment with Donald Trump and far-right politics has damaged Tesla’s brand, triggering global protests and vandalism.

Analysts attribute the sales slide primarily to reputational harm, compounded by aging models and fierce competition from BYD and others.

Deutsche Bank forecasts a 5% sales dip this year. Musk’s political role has fueled calls for boycotts, with concerns that prolonged involvement could cause lasting brand damage.