Elon Musk has lengthy been credited with turning Tesla right into a beacon of innovation, the visionary who pushed the world into an period of electrification. However his slide into politics – particularly his alignment with President Trump and actions throughout the federal authorities – has dragged Tesla into uncertainty.
For a lot of would-be Tesla patrons, the model has misplaced its progressive luster. And whereas Musk has lengthy been the face of Tesla, that hyperlink has taken a unfavourable flip because the billionaire oversees mass layoffs and the elimination of federal packages through the Division of Authorities Effectivity.
Tesla’s disappointing first-quarter deliveries reveal simply how a lot the model has fallen out of favor. The corporate reported 336,681 deliveries within the first three months of 2025, down from 495,570 in This autumn 2024 and 386,810 within the first quarter of final yr. That’s off the again of an unimpressive 2024, which noticed fewer deliveries than the yr prior amid manufacturing delays and elevated EV competitors.
For a lot of, Musk’s political actions have turned Tesla right into a symbolic pariah. Tesla trade-ins have hit file highs, whereas gross sales in Europe have dropped. Overseas leaders are calling for boycotts and the automaker’s inventory worth has misplaced about half its worth since December. All of the whereas, protesters proceed to assemble exterior Tesla showrooms, dealerships, and even charging stations in an effort to speed up the automaker’s model devaluation and with it, they hope, Musk’s wealth.
“They have a certain significant public image problem that’s really something we haven’t seen before in this industry,” Sean Tucker, lead editor at Kelley Blue Guide, instructed TechCrunch.
Even one in all Tesla’s most unwavering bulls, Dan Ives, has begged Musk to focus much less on politics and extra on his enterprise “or else unfortunately darker times are ahead for Tesla.”
To fight the impact this may need on Tesla, Musk has and certain will proceed to lean on his gross sales pitch that Tesla isn’t an automaker, it’s an AI firm, one that may sometime commercialize autonomous automobiles and humanoid robots.
The query now’s whether or not or not the Tesla model can get better.
Under are the moments, which TechCrunch will proceed to replace, which are shaping notion of the Tesla model and should have a long-lasting impact on its future.
A MAGA hat on wheels
Whereas latest research discovered that Musk’s political leanings have misplaced him prospects in what has traditionally been Tesla’s base – Democrats – the shift has garnered him avenue cred with Republicans. One examine from researchers at Northeastern College, Columbia College, and the College of Iowa discovered that Republicans’s probability to buy a Tesla moved up from 7% earlier than Musk’s Trump endorsement to 10.2% after.
That sentiment may solely improve amidst Trump’s reciprocal endorsement of Musk and Tesla, together with his free business on the White Home on March 11.
‘Hang onto your stock’
At an impromptu, glitchy, live-streamed Tesla all-hands presentation on the night of March 20, Musk instructed his staff and buyers to “hang onto [their] stock” regardless of it feeling “like Armageddon.”
“It’s very difficult for people in the stock market, especially those that look in the rearview mirror, which is most people, to imagine a future where suddenly a 10 million vehicle fleet has five to 10 times the usefulness,” Musk stated, referring to the now-defunct declare that each one current Teslas have the {hardware} crucial to show into absolutely self-driving vehicles with a mere software program replace.
He suggested staff to tune out the noise and give attention to constructing the Cybercab, which might be the brand new precedence. The Cybercab is a two-seater robotaxi with no steering wheel or pedals. Present federal laws don’t permit for the mass manufacturing of such automobiles as a result of they don’t have human controls, however Musk has signaled an intent to amend these guidelines.
He famous that the Cybercab manufacturing course of can be a feat of engineering, a “high-speed consumer electronics line” that “will move so fast that…it’ll be able to produce a car, ultimately, in less than five seconds.”
In the course of the name, Musk additionally promised to provide about 5,000 Optimus robots this yr, which he believes will probably be Tesla’s most precious asset.
‘Moment of truth’
On the identical day because the sudden all-hands, Tesla bull Dan Ives wrote in a observe that Musk’s involvement in DOGE has led to a “brand tornado crisis moment for Musk and Tesla.”
“If you agree or disagree with DOGE it misses the point that by Musk spending 110% of his time with DOGE (and not as Tesla CEO) since President Trump got back into the White House this has essentially turned Tesla into a political symbol…. and this is a bad thing,” Ives wrote.
Molotov cocktails and vandalism
Tesla showrooms, charging stations, services, and even privately owned automobiles have been hit with assaults. In some instances, the injury is minimal – some spray paint and a keyed automobile. In others, violence has ensued. Dealerships have been hit with bullets and Molotov cocktails, and charging stations have been set on fireplace.
Musk has responded by questioning why anybody would wish to harm Tesla.
Trump’s response has been extra pointed. He has declared that any acts of violence – which may embrace spray-painting – can be handled by the federal authorities as home terrorism.
“I look forward to watching the sick terrorist thugs get 20-year jail sentences for what they are doing to Elon Musk and Tesla. Perhaps they could serve them in the prisons of El Salvador, which have become so recently famous for such lovely conditions!” Trump stated on his social media platform, Reality Social.
As of the time of this writing, the Division of Justice has introduced costs towards three people who’re allegedly accountable for violent destruction of Tesla properties.
Tesla Takedowns
Peaceable protests have additionally erupted throughout the nation as a part of the so-called Tesla Takedown motion.
The motion’s aim is to hit Musk the place it hurts – his pockets, and the supply of his wealth and energy. Protesters have been displaying up at Tesla dealerships and showrooms to attempt to discourage folks from shopping for Tesla vehicles. Additionally they goal to encourage Tesla homeowners to commerce of their automobiles and Tesla stockholders to promote their shares.
Regardless of these protests being peaceable, we’re starting to see the beginning of violent counter-protests – just like the Florida man who drove his SUV right into a crowd of protestors exterior a Palm Seaside Tesla dealership in March.
Associating with the Proud Boys
1000’s of individuals joined in Tesla Takedown protests the final weekend in March at showrooms throughout the nation. The crowds drew small numbers of counter-protests in some areas that Wired experiences had been peopled primarily by MAGA supporters. Amongst them had been far-right extremists, together with members of the Proud Boys and armed militias.
The ‘Roman’ salute
Whereas talking at a rally celebrating Trump’s inauguration in January, Musk did what many have perceived to be not one, however two, Nazi salutes.
The injury has solely been amplified amidst Musk’s vocal help for the far-right German political social gathering AfD, in addition to his historical past of sharing anti-semitic posts.
Shortly after the salute incident, activists projected a picture of Musk doing the salute, together with the phrase “Heil,” onto Tesla’s Berlin gigafactory.
Drop in European gross sales
A latest survey of 100,000 Germans discovered 94% would by no means buy a Tesla, and gross sales knowledge backs that up.
Germany is the house of one in all Tesla’s gigafactories and historically one of many automaker’s largest markets. However in February 2025, Tesla gross sales within the nation had been down 76% to only 1,429 gross sales for the month, in contrast with 6,038 in February 2024.
Tesla’s gross sales have slumped at a equally aggressive tempo throughout Europe. In February, Tesla’s registrations throughout the continent fell 44% year-over-year, following a decline of 45% in January.
BYD breakthroughs
One among Tesla’s largest opponents, China’s BYD, has been touting vital breakthroughs in charging. The automaker stated this week that its new vehicles could be charged in 5 minutes, which might give it an enormous aggressive edge over Tesla and certainly another EV maker.
China is one in all Tesla’s largest markets, however BYD is continuous to bully the automaker on its dwelling turf. BYD just lately unveiled its “God’s Eye” superior driver help system – akin to Tesla’s Autopilot and FSD – that will probably be put in at no further value on its complete EV lineup, together with its ultra-cheap $9,600 Seagull hatchback.
BYD continues to impress shoppers with its high-tech vary of EVs and hybrids and has as soon as once more surpassed Tesla on income. In 2024, BYD reported $107 billion in income in comparison with Tesla’s $97.7 billion.
An ageing lineup and Cybertruck remembers
Tesla has languished with an ageing lineup for years. The Cybertruck was meant to be the automaker’s subsequent huge wager that will show it’s nonetheless able to delivering revolutionary new fashions. And certainly, the truck has been in style amongst American patrons.
Nonetheless, Tesla has issued eight remembers on the Cybertruck since launching the automobile in November 2023. Most just lately, Tesla needed to recall 46,000 Cybertrucks due to an exterior metal trim panel on the facet of the windshield that appears prefer it was caught on with tremendous glue and might simply peel off.
