The USA Leaders
11 April 2025
Austin – Tesla is in trouble. And not just because the competition is catching up. The electric vehicle pioneer that once defined the future is now stuck in a storm of political backlash, disappointing sales, and brutal market competition in 2025.
For a company long praised for its innovation and Elon Musk’s larger-than-life persona, the narrative has flipped—and fast. Tesla’s aura of invincibility is cracking, and investors, consumers, and regulators are paying close attention.
The Numbers Don’t Lie: Tesla’s Sales Are Slipping
The spark that once electrified Tesla’s delivery numbers is fading. In Q1 2025, Tesla reported a 13% year-over-year drop in global deliveries—the sharpest in its history. Only 336,681 vehicles rolled out, versus nearly 387,000 a year ago.
Markets reacted immediately. Tesla’s stock price has nosedived 45% since December 2024, wiping out billions in market value and casting doubts on its long-term growth story.
Across the map, the pain is widespread:
- United States: New registrations down 11% in January. Activist-led boycotts have further soured public sentiment.
- China: Once a booming market, now slipping fast. Tesla’s February sales dropped 49%, with local giant BYD overtaking Tesla as the world’s top EV maker.
- Europe: The numbers are worse. A 49% drop in early 2025. In Germany alone, sales have collapsed by 76%, partly due to Musk’s alignment with the far-right AfD party.
Stock Check: Where Do Tesla Shares Stand?
Tesla is in trouble for sales, and its stock has been on a rollercoaster:
- After hitting an all-time high of $479.86 in December 2024, shares plunged to a year-low of $138.8.
- Recent rebounds were short-lived. As of now, shares are hovering around $252.4, down 7.27% on the day.
- Analysts are split: Some forecast a bullish bounce to $555; others see more pain ahead with bearish estimates around $216.
Politics at the Wheel: Is Musk Hurting His Own Brand?
Elon Musk, once celebrated as a genius disruptor, is now the face of Tesla’s political storm.
By taking on a leadership role in the Department of Government Efficiency (DOGE) under Donald Trump’s revived campaign, Musk has alienated swaths of consumers. His public endorsements of controversial far-right figures in Europe have triggered protests, vandalism, and a collapse in goodwill.
A recent Morgan Stanley survey found that 85% of respondents believe Musk’s politics are harming Tesla’s business. That’s not just public perception; that’s potential lost revenue.
Tesla’s Competitors Smelling Electric
The EV war has intensified, and Tesla no longer leads by a mile.
BYD, Volkswagen, and BMW are not just catching up they’re outpacing Tesla in innovation, price, and delivery. Tesla’s once-trusted workhorses like the Model 3 and Model Y are starting to feel stale, while competitors are launching fresher, smarter, and often cheaper alternatives.
Tesla’s aggressive price cuts have backfired, eroding margins without driving sufficient volume. Analysts now warn that the company’s “volume over value” strategy may invite long-term instability.
Investor Confidence Is on Thin Ice
Wall Street is jittery. JPMorgan cut its delivery forecast by 20%. Deutsche Bank now expects Tesla to underperform in 2025, citing production delays and brand damage.
Tesla’s grand plans, like launching a cheaper EV and scaling up the Cybertruck, have done little to reassure. Unless the new models feel radically different, analysts fear they might just be old cars in new packaging.
Inside the Tesla Storm: Controversies Fueling the Crisis
Tesla’s image problem isn’t just about missed sales targets. The company is wrestling with a perfect storm of controversies, including:
- Political missteps: Musk’s far-right endorsements and controversial tweets have backfired globally.
- Safety issues: Reports of brake failures, “whompy wheels,” and botched Full Self-Driving features have raised alarm bells.
- Workplace woes: Allegations of harassment, racism, and anti-union practices have surfaced.
- Marketing investigations: Regulatory heat is growing over Tesla’s misleading safety claims and hidden product flaws.
- Environmental ironies: Despite being an EV company, Tesla has been scrutinized for promoting energy-intensive crypto usage.
Tesla’s Counterattack: Can the Company Turn the Corner?
Tesla is in trouble but isn’t sitting still.
Product Revamps
- A refreshed Model Y has launched in China with modern features.
- A budget-friendly EV is on the horizon, but success will depend on whether it offers more than just a lower price tag.
Tech Push: Musk is betting big on Full Self-Driving and robotaxi platforms, though skepticism remains high after years of missed deadlines.
Geographic Expansion: Tesla is entering India in 2025, starting with imports from Berlin and targeting local manufacturing with incentives under India’s new EV policy.
Brand Strategy: Some insiders hint Musk may refocus on Tesla operations, dialing back on political exposure to stabilize the brand.
Price Tweaks and Incentives: To stay relevant in an aggressive EV landscape, Tesla is experimenting with dynamic pricing, discounts, and easier financing.
Tesla in India: A New Hope or Too Late?
India could be Tesla’s next growth engine or another uphill battle.
- The initial launch includes limited Model 3 imports priced around ₹35–40 lakh.
- Showrooms in Delhi and Mumbai are confirmed.
- Tesla is scouting local factory sites to bypass high tariffs and gain policy benefits.
Still, local competitors and price sensitivity in the Indian market may challenge Tesla’s luxury-focused model.
Final Word: Tesla’s Identity Crisis
Tesla’s troubles in 2025 are deeper than a bad quarter; they reflect a brand in crisis, a CEO under fire, and a market that’s no longer patient.
So, Tesla is in trouble, and Elon is responsible?
The company that once defined the EV revolution now finds itself at a crossroads. If it can reboot its image, refine its tech, and reconnect with consumers, Tesla may still have juice left in the tank.
But for now, Tesla is in trouble, and the world is watching.
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