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 unfavorable flip because the billionaire oversees mass layoffs and the elimination of federal applications by way of 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 fall 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. International leaders are calling for boycotts and the automaker’s inventory value 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’ve a sure vital public picture downside that’s actually one thing we haven’t seen earlier than on this trade,” Sean Tucker, lead editor at Kelley Blue E book, advised TechCrunch.
Even certainly 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 sadly darker instances are forward 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 can sometime commercialize autonomous autos and humanoid robots.
The query now could be whether or not or not the Tesla model can get better.
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.
A MAGA hat on wheels
Whereas latest 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 study from researchers at Northeastern College, Columbia College, and the College of Iowa discovered that Republicans’s chance to buy a Tesla moved up from 7% earlier than Musk’s Trump endorsement to 10.2% after.
That sentiment would possibly solely improve amidst Trump’s reciprocal endorsement of Musk and Tesla, together with his free commercial on the White Home on March 11.
‘Hold onto your inventory’
At an impromptu, glitchy, live-streamed Tesla all-hands presentation on the night of March 20, Musk advised his workers and buyers to “hold onto [their] inventory” regardless of it feeling “like Armageddon.”
“It’s very tough for individuals within the inventory market, particularly those who look within the rearview mirror, which is most individuals, to think about a future the place immediately a ten million car fleet has 5 to 10 instances the usefulness,” Musk mentioned, referring to the now-defunct declare that every one present Teslas have the {hardware} mandatory to show into absolutely self-driving automobiles with a mere software program replace.
He suggested workers to tune out the noise and deal with 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 shopper electronics line” that “will transfer so quick that…it’ll be capable to produce a automobile, in the end, in lower than 5 seconds.”
Throughout the name, Musk additionally promised to supply about 5,000 Optimus robots this yr, which he believes can be Tesla’s most beneficial asset.
‘Second of reality’
On the identical day because the sudden all-hands, Tesla bull Dan Ives wrote in a word that Musk’s involvement in DOGE has led to a “model twister disaster second for Musk and Tesla.”
“In the event you agree or disagree with DOGE it misses the purpose that by Musk spending 110% of his time with DOGE (and never as Tesla CEO) since President Trump bought again into the White Home this has primarily turned Tesla right into a political image…. and it is a unhealthy factor,” 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 fireplace.
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 might embody spray-painting – can be handled by the federal authorities as home terrorism.
“I look ahead to watching the sick terrorist thugs get 20-year jail sentences for what they’re doing to Elon Musk and Tesla. Maybe they might serve them within the prisons of El Salvador, which have change into so just lately well-known for such pretty circumstances!” Trump mentioned on his social media platform, Fact Social.
As of the time of this writing, the Division of Justice has brought charges against three individuals 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.
The motion’s purpose is to hit Musk the place it hurts – his pockets, and the supply of his wealth and energy. Protesters have been exhibiting up at Tesla dealerships and showrooms to attempt to discourage individuals from shopping for Tesla automobiles. In addition they purpose to encourage Tesla homeowners 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 into a crowd of protestors exterior a Palm Seashore 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 reports have been peopled primarily by MAGA supporters. Amongst them have 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 occasion AfD, in addition to his historical past of sharing anti-semitic posts.
Shortly after the salute incident, activists projected an image 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 never purchase a Tesla, and gross sales information backs that up.
Germany is the house of certainly one of Tesla’s gigafactories and historically one of many automaker’s largest markets. However in February 2025, Tesla gross sales within the nation have been down 76% to simply 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 in all Tesla’s largest opponents, China’s BYD, has been touting vital breakthroughs in charging. The automaker mentioned this week that its new automobiles may be charged in 5 minutes, which might give it an enormous aggressive edge over Tesla and certainly another EV maker.
China is certainly one of 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 can be put in at no further price on its total EV lineup, together with its ultra-cheap $9,600 Seagull hatchback.
BYD continues to impress customers with its high-tech vary of EVs and hybrids and has as soon as once more surpassed Tesla on revenue. In 2024, BYD reported $107 billion in income in comparison with Tesla’s $97.7 billion.
An growing older lineup and Cybertruck remembers
Tesla has languished with an growing older lineup for years. The Cybertruck was meant to be the automaker’s subsequent large guess that might show it’s nonetheless able to delivering revolutionary new fashions. And certainly, the truck has been fashionable amongst American patrons.
Nonetheless, Tesla has issued eight remembers on the Cybertruck since launching the car 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.