Can Tesla survive Elon Musk? Tesla Model 3 and Model Y electric car sales plummet in first quarter, but could this one Musk move save the EV company?

Tesla has underperformed most analysts worst-case scenario, with the EV company reporting a total 323,800 units sold globally in the first three months of 2025.

That figure is against 345,454 vehicles produced, which makes a stark change for a company used to having a queue for its vehicles, given Tesla now has slightly more cars than customers.

It is also Tesla's worst result since 2022, with sales falling almost 13 per cent on the same quarter last year (369,783 sales), which was already down on the 2023 number of 422,000.

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It means that, while year-on-year sales are down 12.9 per cent, the fall from first quarter 2023 to first quarter 2025 is more like 23 per cent.

Tesla is yet to comment on its results, but will host a "live company update and question and answer webcast" on April 22.

Analysts are split on the cause, though most point to Elon Musk's rising presence in the Trump government, and his perceived shift to right-wing politics and parties globally, the company's ageing product portfolio and increased competition from China and Europe.

Most analysts forecasted Tesla deliveries in excess of 350,000, meaning Tesla underperformed against expectations.

2025 Tesla Model Y

2025 Tesla Model Y

2025 Tesla Model Y

However, the sour news had a positive impact on the company's share price, which has plummeted by 36 per cent over the first three months of 2025.

The stock closed up 5.33 per cent, at $US282.76 per share, which Wall Street analysts largely attribute to the news that Musk's role as head of the Department of Government Efficiency, or DOGE, could be ending sooner than expected.

If it happens, that would remove at least some of the controversy surrounding Musk, and allow the CEO to refocus his energy on Tesla. That, combined with the launch of the refreshed Model Y, and a promise to introduce cheaper models this year, has instilled some confidence in the company's share price.

“This quarter was an example of the damage Musk is causing Tesla,” Wedbush analyst Dan Ives told Forbes. "The more political he gets with DOGE the more the brand suffers, there is no debate.”