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 detrimental 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 earnings drop 71% amid weakened gross sales and anti-Musk sentiment, 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 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 report 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 trade,” Sean Tucker, lead editor at Kelley Blue Ebook, informed 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 sadly darker instances are forward for Tesla.” And regardless that Musk mentioned final month that he’d take a step again from DOGE, he’s not giving up on it both.
To fight the impact this might 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 autos and humanoid robots.
The query now could be whether or not the Tesla model can get well.
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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
Elon Musk Speaks at election marketing campaign launch of AfD, Germany’s far-right get together.Picture Credit:Hendrik Schmidt/image alliance / Getty Photos
Tesla’s new automobile gross sales have plunged throughout Europe, whilst gross sales of electrical automobiles made by different manufacturers rose on the continent. Within the first 4 months of 2025, Tesla gross sales dropped 37.2% in Europe, and in Sweden, they dropped 81% year-over-year.
Germany, historically one in all Tesla’s largest markets and residential to one in all its gigafactories, has turned in opposition to Musk in a giant means. A latest survey of 100,000 Germans discovered 94% would by no means buy a Teslaand gross sales information backs that up. In March 2025, Tesla’s Germany gross sales had been down 42.5%. A slight enhance from the 75% gross sales droop 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 “completely false.” Both means, the report does increase questions on succession planning if Musk-associated model devaluation continues. Musk mentioned throughout Tesla’s first-quarter earnings name that he would take a step again from DOGE, however, importantly, he additionally mentioned he’d proceed working for the company for the rest of Trump’s presidency.
Protests are formally a danger
Picture Credit:Rebecca Bellan
“Tesla Takedown” protests have been spreading all over the world with the purpose of encouraging individuals to cease shopping for Teslas 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 primary quarter of this 12 months, these protests have formally change 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 attorneys additionally expanded what’s in danger, saying detrimental perceptions ensuing from the protests, together with the broader criticism of the corporate, “could hurt our model and our enterprise (together with gross sales) and make it tougher to lift further 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 as a result of Musk’s alliance with the president.
In April, Wedbush analyst Dan Ives lower Tesla’s value goal to $315, down 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, should not solely affecting gross sales within the U.S. and Europe, but additionally threatening Tesla’s recognition in China, “additional driv(ing) Chinese language customers to purchase home corresponding to BYD.”
A MAGA hat on wheels
A sticker studying “I purchased this earlier than Elon went loopy” is pictured on a Tesla in Berlin on February 10, 2025.Picture Credit:obias Schwarz / AFP
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 road cred with Republicans. One examine 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 amid Trump’s reciprocal endorsement of Musk and Tesla, together with his free business on the White Home on March 11.
“Cling on to your inventory”
A Tesla Cybercab prototype.Picture Credit:Getty Photos
At an impromptu, glitchy, livestreamed Tesla all-hands presentation on the night of March 20, Musk informed his staff and traders to “hold on to (their) inventory” regardless of it feeling “like Armageddon.”
“It’s very troublesome for individuals 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 automobile fleet has 5 to 10 instances the usefulness,” Musk mentioned, referring to the now-defunct declare that each one current Teslas have the {hardware} crucial to show into totally self-driving automobiles 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 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 could be a feat of engineering, a “high-speed client electronics line” that “will transfer so quick that … it’ll have the ability 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 12 months, which he believes will likely be Tesla’s most beneficial asset.
“Second of fact”
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 “model twister disaster second for Musk and Tesla.”
“In case 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 obtained again into the White Home this has basically turned Tesla right into a political image … and this can be a unhealthy factor,” Ives wrote.
Molotov cocktails and vandalism
A Tesla Supercharger is vandalized on January 31, 2025, in San Diego, California.Picture Credit:Getty Photos
Tesla showrooms, charging stations, amenities, and even privately owned autos have been hit with assaults. In some circumstances, 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 need 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 might serve them within the prisons of El Salvador, which have change into so lately well-known for such beautiful situations!” Trump mentioned on his social media platform, Fact Social.
As of the time of this writing, the Division of Justice has introduced costs in opposition to three people who’re allegedly accountable for violent destruction of Tesla properties.
Tesla Takedowns
NYPD officers stand guard as protesters reveal throughout a Tesla Takedown rally on March 29, 2025.Picture Credit:Getty Photos
Peaceable protests have additionally erupted throughout the nation as a part of the Tesla Takedown motion.
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 counterprotests — just like the Florida man who drove his SUV right into a crowd of protestors outdoors 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 counterprotests in some areas that had been peopled primarily by MAGA supporters, Wired studies. Amongst them had been far-right extremists, together with members of the Proud Boys and armed militias.
The “Roman” salute
Elon Musk gestures as he speaks throughout the inaugural parade, in Washington, DC, on January 20, 2025.Picture Credit:ANGELA WEISS / AFP / Getty Photos
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 by Musk’s vocal help for the far-right German political get together AfD, in addition to his historical past of sharing antisemitic 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
One among Tesla’s largest opponents, China’s BYD, has been touting important breakthroughs in charging. The automaker mentioned this week that its new automobiles might be charged in 5 minutes, which might give it an enormous aggressive edge over Tesla and certainly every other EV maker.
China is one in all Tesla’s largest markets, however BYD is continuous to bully the automaker on its residence turf. BYD lately unveiled its “God’s Eye” superior driver-assistance system — akin to Tesla’s Autopilot and FSD — that will likely be put in at no further price on its whole 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 income. In 2024, BYD reported $107 billion in income in comparison with Tesla’s $97.7 billion.
An ageing lineup and Cybertruck recollects
A Tesla Cybertruck on show in a Tesla showroom.Picture Credit:Michael M. Santiago / Getty Photos
Tesla has languished with an ageing 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 common amongst American consumers.
Nonetheless, Tesla has issued eight recollects on the Cybertruck since launching the automobile 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 superglue and might simply peel off.
