Tesla sales and stock price slump as Musk leads DOGE cuts

The big picture: Q1 sales are "tracking weak" with estimated deliveries heading toward a decline of more than 4%, according to Evercore ISI analyst Chris McNally.

• At that rate — and with Tesla's heavy spending on automation and robotics — analysts say the company is at risk of going free-cash-flow negative, McNally noted.
• The stock is down more than 30% year-to-date and has given up all the gains it enjoyed in the aftermath of the election, which had sparked hopes that Tesla would benefit from Musk's ties to the incoming Trump administration.

By the numbers: Through the first two months of 2025, Tesla sales are down 71% in Germany this year, 45% in Norway, 44% in France and 44% in Spain, according to registration data reported by Electrek.

• Sales have also been slumping in the critical markets of California and China, Bloomberg reported.

What they're saying: "Tesla was already facing increased competition from automakers across the board and across all price points, but now with the potential for politics being thrown into the realm of things to consider when buying a vehicle, there is an added element of polarization," Ivan Drury, analyst at car-research site Edmunds, tells Axios.

• "What will resonate with some will detract others."

Between the lines: Taking a page out of the traditional automotive playbook, Tesla has been offering incentives to juice sales, including 0% financing deals.

• "Currently Tesla is offering nearly all the tricks in the book and [then] some, low APRs, lease incentives, upfront cash discounts, free supercharging," Drury said.

Yes, but: Tesla has potential revenue on the horizon in the form of an affordable model and the introduction of autonomous ride-sharing networks to compete with Uber.