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 damaging flip because the billionaire oversees mass layoffs and the elimination of federal packages through the Division of Authorities Effectivity.
Tesla’s disappointing first-quarter earnings, which noticed income drop 71% amid weakened gross sales and anti-Musk sentiment, display 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 document 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 Ebook, informed TechCrunch.
Even considered one of 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.” And though Musk stated final month that he’d take a step again from DOGE, he’s not giving up on it both.
To fight the impact this may need on Tesla, Musk has and sure will proceed to lean on his gross sales pitch that Tesla isn’t an automaker, it’s an AI firm, one that can sometime commercialize autonomous autos and humanoid robots.
The query now could be whether or not or not the Tesla model can get better.
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Under are the moments, which TechCrunch will proceed to replace, which might be shaping notion of the Tesla model and should have a long-lasting impact on its future.
Drop in European gross sales
Tesla’s new automobile gross sales have plunged throughout Europe, at the same time as gross sales of electrical vehicles made by different manufacturers rose on the continent. Within the first 4 months of 2025, Tesla says dropped 37.2% in Europe, and in Sweden, they dropped 81% year-over-year.
Germany, historically considered one of Tesla’s largest markets and residential to considered one of its gigafactories, has turned towards Musk in an enormous method. A current survey of 100,000 Germans discovered 94% would by no means buy a Tesla, and gross sales knowledge backs that up. In March 2025, Tesla’s Germany gross sales had been down 42.5%. A slight improve from the 75% gross sales hunch in February.
Succession
The Wall Avenue Journal reported in Could that Tesla’s board started trying to find Musk’s potential successor someday round early April as Musk waded additional into Washington to slash authorities spending.
When the report got here out, Tesla chair Robyn Denholm declared the WSJ’s reporting to be “absolutely false.” Both method, the report does increase questions on succession planning if Musk-associated model devaluation continues. Musk stated throughout Tesla’s first-quarter earnings name that he would take a step again from DOGE, however, importantly, he additionally stated he’d proceed working for the company for the the rest of Trump’s presidency.
Protests are formally a danger
“Tesla Takedown” protests have been spreading world wide with the purpose of encouraging individuals to cease shopping for Tesla’s and to promote their Tesla inventory, which protesters say will harm Musk the place he holds most of his energy — in his pockets (extra on these under). As of the first-quarter of this yr, these protests have formally turn into an official danger in Tesla’s regulatory filings.
The brand new danger consider Tesla’s newest SEC filings warns that sure criticism “has incited protests, some escalating to violence targeting our operations, products and personnel.” Tesla’s legal professionals additionally expanded what’s in danger, saying damaging perceptions ensuing from the protests, together with the broader criticism of the corporate, “may harm our brand and our business (including sales) and make it more difficult to raise additional funds if needed.”
Tariff publicity
Whereas Tesla is the automaker finest positioned to parry the blow of Trump’s automotive tariffs within the U.S., the corporate continues to be uncovered because of Musk’s alliance with the president.
In April, Wedbush analyst Dan Ives lower Tesla’s worth goal to $315 from $550, as soon as once more citing Musk’s politics making a model disaster for the automaker. He additionally famous that Musk’s affiliation with Trump, and subsequently his tariff insurance policies, are usually not solely affecting gross sales within the U.S. and Europe, but additionally threatening Tesla’s reputation in China, “further driv[ing] Chinese consumers to buy domestic such as BYD.”
A MAGA hat on wheels
Whereas current research discovered that Musk’s political leanings have misplaced him clients in what has traditionally been Tesla’s base — Democrats — the shift has garnered him avenue cred with Republicans. One research from researchers at Northeastern College, Columbia College, and the College of Iowa discovered that Republicans’ chance 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 industrial on the White Home on March 11.
“Dangle onto your inventory“
At an impromptu, glitchy, livestreamed Tesla all-hands presentation on the night of March 20, Musk informed 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 every one present Teslas have the {hardware} mandatory 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 rules don’t enable for the mass manufacturing of such autos 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.”
Throughout the name, Musk additionally promised to supply about 5,000 Optimus robots this yr, which he believes will likely be Tesla’s Most worthy asset.
“Second of reality“
On the identical day because the sudden all-hands, Tesla bull Dan Ives wrote in a be aware 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 autos have been hit with assaults. In some circumstances, the harm 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 hearth.
Musk has responded by questioning why anybody would need 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, Fact Social.
As of the time of this writing, the Division of Justice has introduced prices towards three people who’re allegedly answerable 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.
Protesters have been displaying up at Tesla dealerships and showrooms to attempt to discourage individuals from shopping for Tesla vehicles. Additionally they goal to encourage Tesla house owners to commerce of their autos 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
Hundreds 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 harm has solely been amplified amidst Musk’s vocal assist for the far-right German political get together 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.
BYD breakthroughs
Considered one of Tesla’s largest opponents, China’s BYD, has been touting important breakthroughs in charging. The automaker stated this week that its new vehicles will be charged in 5 minutes, which might give it an enormous aggressive edge over Tesla and certainly another EV maker.
China is considered one of Tesla’s largest markets, however BYD is continuous to bully the automaker on its dwelling turf. BYD lately unveiled its “God’s Eye” superior driver help system — akin to Tesla’s Autopilot and FSD — that will likely 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 getting old lineup and Cybertruck recollects
Tesla has languished with an getting old lineup for years. The Cybertruck was meant to be the automaker’s subsequent large wager that may show it’s nonetheless able to delivering modern new fashions. And certainly, the truck has been fashionable amongst American patrons.
Nonetheless, Tesla has issued eight recollects on the Cybertruck since launching the car in November 2023. Most lately, Tesla needed to recall 46,000 Cybertrucks due to an exterior metal trim panel on the aspect of the windshield that appears prefer it was caught on with tremendous glue and might simply peel off.
