SAN DIEGO (Border Report) — Tesla deliveries plunged 13% worldwide during the first quarter of this year, according to reports in Reuters and the Wall Street Journal.
Both publications say Tesla CEO Elon Musk and his political activities are factors in the decreased demand for the electric vehicles made by his company.
Sales from Tesla China, which exports to foreign markets, fell 49% in February but fared better in March after it started delivering the refreshed Model Y in China, according to the China Passenger Car Association.
In Germany, home to Tesla’s European factory, new-vehicle registrations fell 76.3% in February compared with the same period last year, according to the country’s Motor Transport Authority, this was also reported by the WSJ.
Last October, Tesla scrapped plans to build a factory in Mexico, prompting backlash from the Mexican government.
Mexico’s president said at the time “Teslas were too onerous, or expensive for the Mexican market since its cheapest car, the Model 3, costs about $30,000.”
She pledged to create a small Mexican-made and more affordable electric car to compete with similar imported vehicles including Teslas.
Since then, Tesla sales in Mexico have lagged and are also down when compared to last year, according to Fortune, a financial publication based in New York City.
In the U.S. and several countries in Europe, Tesla dealerships have been vandalized during protests.
Last month, Molotov cocktails set fire to one Tesla repair shop in Las Vegas.
According to the Wall Street Journal, some financial analysts say Musk’s proximity to Trump will aid the CEO’s businesses in the long run, including through federal regulations that simplify Tesla’s path to deploying autonomous vehicles nationwide.
“In our view, Tesla’s softer auto deliveries are emblematic of a company in the transition from an automotive ‘pure play’ to a highly diversified play on AI and robotics,” Morgan Stanley analyst Adam Jonas wrote on March 20.
Tesla has said that it plans to start offering autonomous ride-hailing services in June near its headquarters in Austin, Texas, and that it plans to roll out a similar service in California by the end of the year.
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