Is it time for the carmaker’s CEO to step down before the damage becomes irreversible?
Tesla’s global sales have taken a sharp downturn. In California—historically a Democratic stronghold and the carmaker’s largest U.S. market—sales dropped nearly 8% in the final quarter of 2024.
The situation in Europe is even more severe. In Germany, where Elon Musk publicly endorsed the far-right AfD party ahead of last month’s federal election, Tesla registrations plummeted by 76% in February.
Meanwhile, discontent among owners is becoming increasingly visible, with anti-Musk bumper stickers bearing slogans like “I bought this before Elon went crazy” and “Vintage Tesla Pre-Madness Edition” appearing more frequently.
Investors have taken notice, with Tesla’s stock price plunging since the start of the year, erasing nearly $800 billion from its market value.
Cost-conscious electric vehicle buyers in 2025 now have a far wider selection than just a few years ago, with many models available at lower price points.
Tesla, once known for its aggressive discounting to drive EV adoption, now faces intense competition in a crowded market increasingly dominated by Chinese manufacturers. These firms leverage highly efficient production processes to stay lean and competitive.
China’s largest EV maker, BYD, which sells models similar to Tesla’s but at prices around £15,000 lower, overtook Tesla in global sales back in 2023. Since then, it has continued gaining traction in Europe, though it remains unavailable in North America.
“It’s a fundamental reality that competing with Chinese automakers is nearly impossible due to lower labor costs, abundant resources, and strong government support,” says Ezeziat. “At some point, we either have to collaborate with them or risk falling behind.”
Chinese EV penetration in Europe is already underway and is expected to accelerate through 2027 and beyond. However, breaking into the U.S. market will be significantly more challenging due to protectionist trade policies.
Despite its recent struggles, Tesla remains the world’s most valuable carmaker and still commands nearly half of the U.S. EV market.
However, internal unrest is growing. At a recent staff meeting, employees and senior managers in one division voiced concerns that Musk’s actions are harming the company and its sustainability mission, according to a recording obtained by The Washington Post. Some senior managers even suggested that Tesla would be better off if Musk stepped down.
With the crisis deepening, it seems unlikely that selling one extra car to President Trump will turn things around.
