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 consumers, 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 applications through the Division of Authorities Effectivity.
Tesla’s disappointing first-quarter earnings, which noticed earnings drop 71% amid weakened gross sales and anti-Musk sentiment, show 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 12 months. That’s off the again of an unimpressive 2024, which noticed fewer deliveries than the 12 months 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 value has misplaced about half its worth since December. All of the whereas, protesters proceed to assemble outdoors 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 important public picture drawback that’s actually one thing we haven’t seen earlier than on this business,” Sean Tucker, lead editor at Kelley Blue Guide, informed TechCrunch.
Even one in every 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.” And although 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 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 automobiles and humanoid robots.
The query now could be whether or not or not the Tesla model can recuperate.
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Beneath are the moments, which TechCrunch will proceed to replace, which are shaping notion of the Tesla model and will have a long-lasting impact on its future.
Drop in European gross sales
Tesla’s new automotive gross sales have plunged throughout Europe, at the same time as gross sales of electrical automobiles 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 one in every of Tesla’s largest markets and residential to one in every of its gigafactories, has turned in opposition to Musk in an enormous approach. A current survey of 100,000 Germans discovered 94% would never purchase a Tesla, and gross sales information backs that up. In March 2025, Tesla’s Germany gross sales have been down 42.5%. A slight enhance from the 75% gross sales stoop in February.
Succession
The Wall Avenue Journal reported in Could that Tesla’s board started looking for 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 “completely false.” Both approach, 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 rest of Trump’s presidency.
Protests are formally a danger
“Tesla Takedown” protests have been spreading world wide with the objective of encouraging folks 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 beneath). As of the first-quarter of this 12 months, 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 concentrating on our operations, merchandise 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, “might hurt our model and our enterprise (together with gross sales) and make it tougher to boost extra funds if wanted.”
Tariff publicity
Whereas Tesla is the automaker greatest positioned to parry the blow of Trump’s automotive tariffs within the U.S., the corporate continues to be uncovered resulting from Musk’s alliance with the president.
In April, Wedbush analyst Dan Ives minimize Tesla’s value 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 in addition threatening Tesla’s reputation in China, “additional driv[ing] Chinese language shoppers to purchase home similar to BYD.”
A MAGA hat on wheels
Whereas current 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 road cred with Republicans. One study 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 would possibly solely enhance 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, livestreamed Tesla all-hands presentation on the night of March 20, Musk informed his staff and traders to “dangle onto [their] inventory” regardless of it feeling “like Armageddon.”
“It’s very troublesome for folks within the inventory market, particularly people who look within the rearview mirror, which is most individuals, to think about a future the place all of the sudden a ten million car fleet has 5 to 10 instances the usefulness,” Musk stated, referring to the now-defunct declare that each one present Teslas have the {hardware} essential to show into absolutely self-driving automobiles with a mere software program replace.
He suggested staff to tune out the noise and concentrate on 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 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 could be a feat of engineering, a “high-speed shopper electronics line” that “will transfer so quick that…it’ll have the ability to produce a automotive, in the end, in lower than 5 seconds.”
Through the name, Musk additionally promised to supply about 5,000 Optimus robots this 12 months, which he believes will probably be Tesla’s most useful asset.
“Second of fact“
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.”
“When 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 this can be a dangerous factor,” 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 automotive. 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 — could be handled by the federal authorities as home terrorism.
“I sit up for watching the sick terrorist thugs get 20-year jail sentences for what they’re doing to Elon Musk and Tesla. Maybe they may serve them within the prisons of El Salvador, which have turn into so just lately well-known for such pretty circumstances!” Trump stated on his social media platform, Reality Social.
As of the time of this writing, the Division of Justice has brought charges against three individuals who’re allegedly chargeable 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 folks from shopping for Tesla automobiles. 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 into a crowd of protestors outdoors 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 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 injury has solely been amplified amidst Musk’s vocal assist 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 an image of Musk doing the salute, together with the phrase “Heil,” onto Tesla’s Berlin gigafactory.
BYD breakthroughs
One among Tesla’s greatest opponents, China’s BYD, has been touting important breakthroughs in charging. The automaker stated 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 one in every of Tesla’s largest markets, however BYD is constant 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 extra value on its total 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 revenue. In 2024, BYD reported $107 billion in income in comparison with Tesla’s $97.7 billion.
An getting older lineup and Cybertruck remembers
Tesla has languished with an getting older 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 well-liked amongst American consumers.
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 may simply peel off.