Despite past self-inflicted issues, Tesla thrived. However, recent Q1 2025 earnings show a 71% profit drop. Musk blames organized protests over his DOGE involvement and far-right support. He’ll reduce DOGE focus and political activity, returning to Tesla.
Low US sales, despite rising EV demand, stem from left-leaning buyers boycotting due to Musk’s Trump support. European sales are also down due to his backing of far-right politicians. Competitors offer compelling EV alternatives. A cheaper Tesla is anticipated, but focus seems to be on robotaxis, dependent on current car sales.
China’s EV market, inspired by Tesla, now features advanced local competitors. While Musk’s removal is debated, Tesla faces significant brand repair. The once disruptive company now feels like a struggling legacy brand, hampered by its leader’s polarizing actions. Forgiving Musk for his political stances may be crucial for Tesla’s future.