Tesla reported abysmal first-quarter 2025 earnings, with profits dropping 71 percent compared to the same period last year. Elon Musk attributed the decline to organized protests against his political involvement and leadership of DOGE.
Musk announced he will significantly reduce his time commitment to DOGE and politics, refocusing on Tesla. Even his ardent supporters had urged this change.
The protests, fueled by Musk's support of far-right politicians, notably the AfD in Germany, and his role in funding the Trump campaign, negatively impacted Tesla sales in the US and Europe. Left-leaning EV buyers are boycotting the brand.
Tesla faces growing competition from other EV manufacturers offering better features, longer ranges, and lower prices. Despite the potential of a cheaper new Tesla model and plans for a robotaxi service, the company's ability to sell cars now is crucial to funding those future endeavors.
In China, Tesla is competing against numerous domestic companies using Tesla's technology to create more advanced and competitive EVs. The article questions whether removing Musk as CEO would be enough to revive the brand, suggesting the damage to its image may be more extensive than a leadership change alone could remedy.
Ultimately, Tesla's future depends on regaining the trust of left-leaning EV buyers and overcoming competition in a rapidly evolving market.