Tesla Facing Major Setbacks: Inflated Sales Figures, SUV Delays, and Leadership Turmoil Sink Shares

Tesla is facing mounting pressure as a combination of inflated sales figures, delays in its much-anticipated affordable SUV lineup, and CEO Elon Musk’s growing distractions have triggered a sharp decline in its share price.

Early 2025 has brought a wave of challenges for the electric vehicle giant. Delivery numbers revealed a 13% year-over-year drop with just 336,681 units moved in Q1, substantially missing market expectations. This stumble has wiped out around $460 billion from Tesla’s market capitalization, with shares plunging 36% so far this year.

At the heart of the crisis are questions about Tesla’s reported sales data. Analysts and industry observers point to opaque reporting practices that make it difficult to accurately assess regional or model-specific sales, especially in the U.S. Market experts estimate that U.S. deliveries fell by 15% compared with a year earlier—a far steeper drop than Tesla has publicly acknowledged.

Meanwhile, prospective buyers waiting for cheaper Model Y and other affordable SUVs have been left disappointed as Tesla has once again delayed production of these models. The start of production for the slimmed-down Model Y, internally referred to as E41, has been pushed to late 2025 or early 2026. This follows similar postponements in both the U.S. and international markets, creating uncertainty among customers and investors alike.

Compounding Tesla’s operational woes are ongoing concerns about CEO Elon Musk’s political entanglements across several countries, which have drawn protests and negative attention to the company’s brand. As competition in the EV sector intensifies and Tesla’s product lineup ages, the firm now faces critical questions about its strategic direction and leadership focus.