The trailblazer in electric vehicles is now encountering challenges from various directions. The most notable among these are the moves made by its Chief Executive Officer.
I have reported on electric cars for over 15 years, witnessing numerous highs and lows during this period. However, I was rather shocked by the abundance of negative content about Tesla that has appeared in my social media feed and even reached me directly in recent weeks.
This statement goes beyond typical anti-EV misconceptions and absurdity. The claim of someone commuting 125 miles round trip daily up a 9,000-foot incline while hauling 14,000 pounds: EVs can’t handle that! This criticism against Tesla is much more particular than general negativity towards electric vehicles. all about Elon Musk And Musk can only point his finger at himself this time.
Damage On Many Fronts
The longtime CEO of Tesla has changed his tune; he no longer garners attention primarily for technological advancements but instead through deeds that collectively paint him as an extremist: backing ultra-right-wing causes ; one or more alleged Nazi salutes ; racist posts and anti-trans agitation On his social media platform X; and—above all—his arguably lawless rampage via U.S. governmental departments as the leader of what was dubbed the Department of Government Efficiency (DOGE).
There are certain signs suggesting that Musk might be fading at DOGE , particularly following the defeat in the Wisconsin Supreme Court election where his endorsement and investment were entirely unsuccessful. However, the harm to Tesla is already clear. Sales in both Europe and the United Kingdom have drastically dropped, with North American numbers barely holding steady at most. The company revealed earlier this week that it delivered 336,681 vehicles globally In the initial three months of 2025, there was a reduction of 13% compared to the corresponding timeframe in the previous year.
However, despite Musk being the public image of the brand, his recent political moves represent just one aspect of Tesla's myriad issues. Many of these challenges trace their roots back to choices made by Musk as far back as 2019. These past decisions have steered the company towards its present difficulties. To fully grasp the complex web of factors impacting the business now, it’s important to delve deeper into these specifics.
Elon Musk Q1 All-Hands
Cybertruck: A Sales Disaster
The revolutionary and divisive Cybertruck has turned into a significant commercial failure, akin to the Edsel debacle. In over a year, only around 50,000 units were sold in North America, far below initial forecasts which projected much higher numbers. Despite being the top-selling electric pickup truck in 2024, it seems that nearly all those interested have made their purchases. This indicates that we've identified the demand for big, metallic silver, battery-powered vehicles with an apocalyptic aesthetic—it simply isn’t substantial enough to support what is currently the planet's most valuable automaker.
2024 Breakthrough Award Nominee: The Tesla Cybertruck
Furthermore, unlike all preceding Tesla models, the Cybertruck is presently restricted solely to North America. Due to its dimensions and distinctive build, marketing this vehicle proves challenging globally. As of December, Tesla announced they have no immediate intentions for selling the truck in China. Additionally, concerns persist in Europe regarding whether the stainless-steel pickup can meet requirements related to pedestrian safety concerning impacts and crushing regulations.
Given that a highly anticipated upcoming product unveiled in 2019 was reportedly reserved by one million or more people, this level of restriction appears rather limiting.
Stale Products, Real Competitors
The more budget-friendly Tesla models—the Model Y crossover and the Model 3 sedan—are considered outdated in today’s market, as vehicles typically get refreshed every three years and completely replaced within five to seven years. The realm of electric vehicles is progressing rapidly, outpacing the advancement rate of gasoline-powered cars, yet the pioneering company seems to be lagging behind. The Model Y "Juniper" update has recently entered the U.S. market, yet despite being the world's best-selling vehicle, it faces significant challenges from numerous newer and frequently superior rivals.
2025 Tesla Model Y Euro Edition Release Lineup
In 2017, during the launch of the Model 3, this was definitely not true, nor was it accurate at the beginning of 2020 with the introduction of the Model Y. Since then, over twenty new electric vehicles from well-known manufacturers along with those from Rivian and Lucid have entered the market. Regarding China, they've adopted elements they found useful from Tesla and progressed independently. Therefore, it would be incorrect to assume that sales will instantly revert to previous yearly figures without considering Musk’s recent activities impacting consumer sentiment.
Moreover, despite your strong desire for a Tesla, why not consider purchasing a pre-owned model instead? The current abundance of second-hand Teslas available reflects the high number of dissatisfied owners trading their vehicles in for alternative electric cars. This influx creates fierce rivalry between newer models and these "slightly-used" alternatives. These older versions closely resemble contemporary new units both visually and functionally, with declining resale values making them unexpectedly cost-effective compared to buying fresh off the production line.
Still No $25,000 Tesla
In October, Musk stated that the company had withdrawn from his initial promise made in 2020 about offering a "$25,000 Tesla.” He mentioned that producing a $25,000 Tesla model not designated as a robotaxi was unfeasible. pointless And 'silly.' He made these remarks just a few months after stating that Chinese electric vehicles are of such high quality that without trade barriers, they would ‘essentially dominate most other automobile manufacturers globally.’ Is there a cause-and-effect relationship? This appears quite plausible.
Tesla Offers a More Accessible Compact Electric Vehicle
The rising cost is becoming an obstacle for new car purchases in North America, with the demand leaning towards more budget-friendly vehicles across the board. An electric vehicle that is genuinely affordable might see tremendous sales success, and Tesla seemed well-positioned to provide such a model.
Now, that section seems destined to be transferred to Hyundai and Kia , and the forthcoming updated version of Chevrolet Bolt EV .
China Is Over It
At the beginning of 2020, right when the globe was going under lockdown, Tesla's Model 3 vehicles manufactured in Shanghai hit the Chinese market. A year later came the Model Y. These two models sparked an enthusiasm among Chinese consumers for electric vehicles (EVs) that local manufacturers hadn’t managed to generate before. By bringing a technology-driven Western automotive brand deep into China’s automobile sector, they caused sales at the Shanghai Gigafactory to skyrocket.
Those days are over. Amidst vastly improved offerings from Chinese makers that benefitted from heavy subsidies early on and can now better meet the needs of local customers, Teslas are now seen as old, stale, and far from competitive with the latest domestic brands, especially in the software and infotainment services they offer. In China, Tesla is seen as a reliable and proven brand, but now far from groundbreaking.
Looking for evidence? The revised Model Y serves as an example. couldn't reverse an 11.5% sales decline in China , where concerns about DOGE and Musk's political views rarely factor into decisions for electric vehicle purchasers.
'The Vanished Charging Moat' Has Disappeared
When Tesla announced in 2012 that it would build its own, nationwide, DC fast-charging network, the rest of the industry thought it was insane. Crazy like a fox, maybe. Within two years, it was possible to drive a Tesla cross-country while the competing CCS charging standard used by other EV makers was still being finalized. Deeply integrated into the car, Supercharging was seamless, accurate, and orders of magnitude above the experience in any other EV on the market.
In 2023, Ford struck a deal with Tesla to let its EVs charge at Superchargers. General Motors did the same within weeks, and the rest of the industry breathlessly followed. For Tesla, the advantage is added revenue to continue expanding the Supercharger network’s role as the biggest dog in the North American charging world.
2025 Hyundai Ioniq 5
On the contrary, Tesla’s “charging advantage” in North America, typically the most compelling argument for recommending a Tesla, has vanished. Tesla owners no longer possess their exclusive, superior charging infrastructure. Now, regular consumers can access this as well. In Europe, where a standard connector was required years back, Tesla charging stations have been serving all electric vehicles in these markets for some time.
If you can acquire an electric vehicle akin to a Tesla at present , possibly offering an even better range and additional features, that would still allow access to the Supercharger network without any of the Musk-related complications, why wouldn’t you choose it?
The Robotaxi Obsession
Perhaps most troublesome, Musk appears to have lost interest in the hard business of building and selling cars to consumers. He is all in on so-called self-driving, with the company pivoting to a "robotaxi" business model in which it will build vehicles that will operate in networks it owns to provide on-demand driverless taxi services. And he has claimed the company can sell 2 to 4 million of its proposed Cybercab models a year.
Tesla Cybercab, LA Auto Show 2024
The car, a compact two-seater hatchback, drew curious looks when unveiled last autumn as taxicabs typically have more than just two passenger seats. Robovan It's an intriguing idea, yet since its introduction, not a shred of evidence has emerged suggesting it could become much more than just that. Speculation has pointed towards a potentially cheaper model for Tesla’s lineup possibly being the Cybertruck; however, this version would include a steering wheel along with traditional driving controls.
Yet two-seat vehicles has only ever represented a small portion of the U.S. market, thus requiring an exceptionally affordable price point to garner significant attention. The peak sales year for the Smart Fortwo occurred in 2009 with 14,600 vehicles finding purchasers. Since then, it has managed to sell over 10,000 units just one additional time.
Tesla Robovan
When discussing self-driving software, although Tesla’s camera-based system might be considered one of the top Level 2 (eyes-on, hands-on) systems available according to some opinions, many experts believe it still falls short for hands-free use—and is certainly not close to achieving fully autonomous operation without requiring driver intervention.
Sam Abuelsamid, the vice president of market research at Telemetry, directly addressed the notion of millions of Cybertrucks being produced annually: "It will never become a reality as long as they rely solely on cameras." In contrast, companies like GM, Ford, and Mercedes have already implemented hands-free adaptive cruise control using various sensors. Tesla's current systems still mandate that drivers keep their hands on the steering wheel.
What The Experts Say
I contacted three automotive industry analysts and posed them the main question: Will Tesla remain viable without Musk? They all agreed it would be possible, though they added significant qualifications.
Stephanie Brinley from S&P Global expressed cautious optimism. "While it may not be certain, I believe there is a strong likelihood that Tesla will endure and eventually flourish," she stated. Brinley pointed out several controversies that prominent manufacturers have overcome, such as Volkswagen's worldwide emissions deceit, Ford's issues with tire separation and Pinto fires, and General Motors' extensive recall campaigns due to safety concerns.
Telemetry's Sam Abuelsamid concurred that Tesla could endure. However, he stated, "The company will have to transform into something quite different from what we've come to know." He posited that its expansion phase might be over, estimating its likelihood of reaching an annual production target of 20 million vehicles as nearly impossible. Additionally, he predicted a continued drop in Tesla's sales within China. Describing the vision of deploying vast fleets of autonomous taxis as unrealistic, he encapsulated his outlook with this conclusion: "Tesla will likely evolve into a more modest-sized enterprise moving forward."
2025 Tesla Model Y Euro Edition Release Lineup
Tesla has unquestionably disrupted and led the electric vehicle industry," stated Robby DeGraff, who manages product and consumer insights at the research company AutoPacific. "However, the truth is that numerous superior and engaging alternatives abound for consumers. Tesla faces an unprecedented threat of losing ground to competitors, irrespective of current market conditions.
In the meantime, long-time Tesla supporter Dan Ives from Wedbush Securities stated last week that the harm to the Tesla brand has intensified into what could be described as "a full-blown branding disaster" for both Musk and Tesla. Ives urged Musk to reassume control of the firm where he still holds the position of CEO.
'Not Recoverable'
I similarly contacted a venture capitalist from Silicon Valley, who preferred to remain anonymous because of connections with people backing Tesla—this individual expressed a more cautious perspective. "All other technology executives comprehend the mechanisms driving their businesses and make decisions accordingly," they stated, "but Musk appears to have underestimated how his actions affect Tesla. Clearly, his political stance and activities do not align well with those of his customer base."
They added, "It seems like he was indifferent to safeguarding his Tesla business or simply wasn't aware that such repercussions might follow. It could have been both reasons. In my view, he has caused irreversible harm to the brand; I don't see how it can bounce back. For those potential customers most inclined to purchase Teslas, the company is effectively finished."
Those Who Ignore History...
Seasoned automotive journalists, market experts, and even those who profit from betting against stocks have all come to understand the risks of opposing Tesla or Elon Musk based on harsh lessons they've faced. It will be several years before we can determine whether the company has exhausted its metaphorical nine lives. While deciding to purchase a Tesla yourself, or perhaps sell an ownership stake you hold, continues to rest with individual preference, the brand now confronts significant challenges across nearly every business dimension, which could substantially question its long-term sustainability.
The company's future appears just as uncertain today as it has been for a considerable period, possibly even dating back to when Musk had to cover salaries from his personal funds prior to the Model S release. It is challenging to consider another brand that merges outdated offerings with an acrimonious and extensively covered leader to such an extent. The sole instances I can recall are McAfee and MyPillow Neither of them needed the kind of multi-year, multi-billion-dollar investments essential for success in the global auto sector.
Tesla Model 3 Cutaway
It’s enlightening to delve into automotive history for valuable insights. One such insight is that businesses which introduce groundbreaking technologies or vehicles do not always reap long-term profits from these advancements. For instance, four-wheel hydraulic brakes made their debut in 1921 courtesy of Duesenberg. In 1949, disc brakes were launched on models like the Crosley and Chrysler. Additionally, gasoline direct injection, an innovation credited to Bosch, initially appeared on various compact two-stroke engines produced by defunct German manufacturers. Pioneering cutting-edge designs can be extremely challenging, incredibly time-intensive, and frequently does not lead to substantial financial gains.
One beloved piece of car trivia still stands out: Which business first introduced widely available transverse-engine, front-wheel-drive compact vehicles? This groundbreaking drivetrain, developed during an era dominated by rear-engined compacts, offered exceptional spatial efficiency and became the blueprint for small cars over six decades.
The response to the query is British Motor Corporation. This entity no longer exists.
The issues at BMC arose from a harmful combination of poor leadership, subpar quality, and misguided product choices. For decades, various leaders took actions that were insufficient and delayed; attributing the downfall of the British mass-market car sector to a single individual would be unjustified.
On the contrary, Tesla is essentially the creation of a single individual. Numerous early and key figures who played significant roles within the company—including CTO JB Straubel and battery chief Kurt Kelty—departed years back. It appears that the choices steering Tesla towards its present state were predominantly made by Musk alone.
Unless he is removed by the company’s board–which today seems highly unlikely–history will record that the ultimate fate of the greatest EV pioneer of this century rested entirely with him. For better or for worse.
John Voelcker serves as a reporter and analyst focusing on cutting-edge automotive technology and energy policies, with a particular emphasis on electric vehicles and the surrounding energy landscape. He has also worked as an editor. Green Car Reports For nine years, and his contributions have been featured in Car and Driver, The Drive, Forbes Wheels, Wired, Popular Science and NPR's " All Things Considered ."
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