Tesla’s Crisis Deepens as Elon Musk’s Political Spark Outrage

Introduction

Elon Musk, a name that’s been synonymous with groundbreaking innovation and unmatched ambition, but now many are asking: could the very force that built Tesla be the one holding it back? Tesla has hit unexpected turbulence: faltering sales, rising protests, and a shifting public image. And as Musk’s personal politics take center stage like never before, his actions are creating ripples not just within Tesla but across the world. So what’s really going on behind the scenes? Is the visionary still Tesla’s greatest asset, or has he become its biggest liability? And is Tesla in danger of losing its dominance? Let’s dive in.

Tesla’s Sales Crisis

Declining Sales in Europe

Let’s begin with Tesla’s sales crisis. Its sales trajectory is trending downward, especially in Europe. In Germany, it’s down 76% in February; in France, it’s down 45%; in the Netherlands, it has dropped by 24%; in Sweden, sales are down by 42%; in Norway and Denmark, the sales have fallen by 48%. Moving on to Portugal, sales are down by 53%, and in Spain, it’s dropped by 10%.

ALSO READ: Trump Unveils F-47: World’s First Sixth-Generation Fighter Jet

Global Sales Trends

Outside Europe, trends seem to be similar. Tesla sales in Australia fell 71% in February compared with the same month last year, while the automaker’s worldwide sales of cars produced in China were reportedly down 49%. Meanwhile, U.S. Tesla sales remain relatively stable, but growth has slowed significantly. In California, Tesla registrations fell about 12% last year, indicating mounting challenges for the automaker in the key U.S. market.

The Cause: Musk’s Controversies

And why is that so? Because of Musk’s growing political controversies. Investors are now asking: can Tesla reverse this downward trend?

Musk’s Political Involvement

A New Role in the U.S.

When Donald Trump returned to the White House in January, Musk was appointed to head a brand new government agency, the Department of Government Efficiency. His main task: cutting regulations and streamlining government agencies. However, critics argue he’s using this position to benefit Tesla, SpaceX, and other companies. The big question now is: is Musk exploiting his government role for personal gain? Even some Tesla investors are starting to worry. Their concern: Musk’s growing political focus and his close ties to President Trump may be distracting him from Tesla’s struggling business.

Controversy in Europe

But the controversy isn’t just in the U.S. In Europe, where Tesla sales are already declining, Musk’s public support for far-right parties is pushing away more customers. He has backed the far-right AfD party in Germany, while he’s used his social media platform X to promote right-wing figures in Britain, Italy, and Romania. Additionally, he has been accused of making a Nazi-like salute on stage. Why does this matter? Europe is Tesla’s second-largest market after the U.S., and many Tesla buyers in Europe prioritize environmental policies. His political alignments are clearly hurting Tesla’s brand and sales.

ALSO READ: Why India Ranks Below Palestine & Ukraine? 2025 World Happiness Report:

The Growing Backlash

Protests Across the Globe

The backlash is growing. Protests have erupted across the U.S. and Europe. Tesla showrooms in U.S. cities, including New York, Palo Alto, St. Louis, Chicago, Portland, and Boston, have seen demonstrations. Internationally, protests have spread to Barcelona, London, and Lisbon.

Protesters’ Arguments

But what are protesters arguing? Demonstrators believe Musk’s alignment with Trump and far-right figures contradicts Tesla’s mission. They further believe his anti-union stance is hurting Tesla workers. Protesters also allegedly feel that Tesla’s brand no longer represents progressive and clean energy values, which has forced even its most loyal buyers to question their support for the EV maker.

A Voice from the Crowd

“I decided that I wanted to join the protest here and, um, send a message to Elon Musk in a way that I think is very, um, direct. Um, we could adversely impact sales and inflict financial pain on him, similar to the financial pain that he’s inflicting on our veterans, our seniors, and a lot of less fortunate people in the U.S., along with our federal workers.”Said one protester

“The way to reach and harm someone as reactionary and dangerous as Elon Musk is to put financial pressure on him, and to do that, you have to stop buying Teslas and sell your Tesla shares. This demonstration is not just a question of ethics but also to ensure that people have a minimum of scruples,” said one protester.

Financial Fallout

Stock Market Decline

And the protests are having an impact. Tesla’s stock price has tumbled. The EV maker’s market value has reportedly fallen by 45% since reaching a record high of $1.5 trillion in December 2024. This pushed Musk’s new boss, Trump, to step in and save his employee.

Trump’s Public Support

In a public show of support, the president announced he would buy a Tesla: “And I’m going to buy because, number one, it’s a great product, as good as it gets, and number two, because this man has devoted his energy and his life to doing this, and I think he’s been treated very unfairly by a very small group of people.” said Donald Trump. This helped the stock recover some losses, but Tesla’s struggles are far from over.

ALSO READ: OpenAI’s New Audio Models Unveiled on March 23, 2025: A Game-Changer for Voice AI

Losing Ground in the Market

Rising Competition

In addition to these controversies, Tesla is also reportedly beginning to lose its market share. Chinese EV maker BYD has overtaken Tesla as the world’s largest EV seller. Legacy automakers such as Volkswagen, BMW, Stellantis, and Renault are also aggressively expanding EV production in Europe. In North America, Ford and General Motors are also pricing their EVs lower than that of Tesla.

Profit Margins Under Pressure

This has forced Tesla to slash prices and offer hefty discounts to stay competitive. However, now this is squeezing profits. Reports suggest Tesla’s fourth-quarter profit margin from vehicle sales fell to 13.6%. This has increased concerns for investors. The more distracted Musk gets with politics, government roles, and his other ventures, the harder it will become for Tesla to defend its market position and value.

Tesla at a Crossroads

A Brand in Turmoil

Tesla is at a crossroads. Once an undisputed EV leader, it now faces shrinking sales, growing competition, and a brand in turmoil. And with Elon Musk diving deeper into politics, investors are questioning where his focus truly lies.

Expanding to India

To counter its global sales slump, Tesla is turning to new markets, the largest one in the world. After years of failed attempts, it’s finally making a serious push into India, leasing a flagship showroom in Mumbai with a second in Delhi already planned. But can this pay off, or will Tesla face the ever-inquisitive, mileage-friendly Indian audience? One thing is for certain: given Indian Prime Minister Narendra Modi’s close relations with U.S. President Donald Trump, Musk’s political leanings may not dent Tesla’s image in India.

Conclusion

With the India test ahead, can Musk still steer Tesla through its biggest challenge yet, or will his own decisions drive away customers, investors, and Tesla’s future? In the end, the biggest risk to Tesla might not be the competition, but Elon Musk himself.