Tesla’s Freefall: Why Sales Are Plunging, Executives Are Leaving, and Investors Are Panicking!

Tesla is facing one of its most turbulent periods in recent memory. In just the past few weeks, the electric vehicle giant reported its worst quarterly deliveries since 2022, saw its stock fall over 44% from its December peak, and lost one of its top software executives. Tesla’s Q1 2025 vehicle deliveries came in significantly below expectations at 336,681 units, triggering a wave of analyst downgrades, with JPMorgan citing “unprecedented brand damage” as a key factor. The company’s troubles extend beyond missed sales targets. David Lau, Tesla’s longtime VP of software engineering, announced his departure amid widespread operational and reputational challenges. Meanwhile, the company’s market share continues to fall as consumers react to Elon Musk’s polarizing political affiliations and aging product lineup. As Tesla attempts to pivot toward robotaxis and humanoid robots, the viability of its core EV business and premium valuation is increasingly under scrutiny.