Tesla's Troubles: From Trailblazer to Target

The Musk Backlash

Ben Kilbey, a UK sustainability advocate, loved his Tesla Model Y. He called it a "dream." Now, it's on the chopping block. Kilbey's reason? Elon Musk. He vehemently disagrees with Musk's actions, particularly the firings of government employees.

"I don't like belittlement," Kilbey explained, expressing his discomfort with Musk's approach. He's not alone. A growing wave of discontent with the Tesla CEO has taken hold, fueled by Musk's controversial leadership of the Department for Government Efficiency (DOGE) and his forays into international politics.

Protests have erupted outside Tesla dealerships worldwide, from the US and Canada to Europe. While mostly peaceful, incidents of vandalism and even arson have occurred, painting a stark picture of the escalating tension.

Trump's Support and Musk's Response

Amid the controversy, former President Trump offered a show of support, showcasing Tesla vehicles at the White House and pledging to purchase one. He labeled attacks on Tesla showrooms as "domestic terrorism." Musk, meanwhile, called the violence "insane and deeply wrong," asserting that Tesla "has done nothing to deserve these evil attacks."

Tesla's Sales Slump: More Than Just Musk?

The crucial question remains: How much has Musk's behavior impacted Tesla's bottom line? While the Model Y was the world's best-selling car in the previous year, overall Tesla sales dipped for the first time in over a decade. A 45% drop in European registrations in January and a similar decline in Chinese-made car shipments raised further concerns.

Wall Street analyst Joseph Spak predicted a 5% decline in global Tesla sales, triggering a 15% share price drop in a single day. While research suggests Musk's actions have negatively affected the brand's image, particularly in the EU and Canada, other factors are also at play.

From Cutting-Edge to Dated?

Tesla's once groundbreaking models, like the Model S and X, are showing their age. Even the newer Model 3 and Y face stiff competition in a rapidly evolving EV market.

Stephanie Valdez Streaty of Cox Automotive noted, "They haven't had any fresh models recently...And there’s so much more competition out there." This sentiment was echoed by Professor Peter Wells of Cardiff University, who pointed to a lack of recent product innovation.

The rise of Chinese EV manufacturers, such as BYD, Xpeng, and Nio, further complicates the landscape, offering competitive pricing and advanced technology.

Robotaxis and Divided Attention

Musk's focus seems to lie elsewhere, particularly on autonomous driving technology. His repeated promises of a robotaxi service have been met with skepticism, given the "hands-on" nature of Tesla's current "Full Self Driving" system.

Jay Nagley of Redspy quipped, "Every year we get a new promise from Elon Musk about how his autonomous cars are just around the corner. The trouble is, they never seem to be able to find the corner to emerge from.”

With his involvement in X, xAI, and SpaceX, alongside his government role, questions arise about Musk's ability to effectively lead Tesla.

Calls for New Leadership

While Tesla's valuation remains high, some analysts believe the company would benefit from a change at the helm. Matthias Schmidt of Schmidt Automotive Research stated, "A new CEO for Tesla would without question be the best thing for the company right now." This sentiment reinforces the growing calls for new leadership and a fresh direction for the electric car giant.

By BBC