tesla

Tesla is facing a global drop in sales, and CEO Elon Musk is under fire for focusing on side projects and politics instead of addressing the crisis. While sales in Europe and China are plunging, investor frustration is rising and calls for leadership change are growing louder.

📉 Tesla’s Sales Are Falling – and No One’s Stopping the Decline
2025 started on a sour note for Tesla. In Europe, the company saw a 45% drop in new registrations in January, with February showing little improvement. In China, deliveries plunged by over 49%, while markets like the UK and Australia only showed modest growth.
UBS analyst Joseph Spak predicted a 5% decline in global Tesla revenues, sparking immediate negative reactions from investors and a drop in Tesla’s stock price.

⚠️ Musk’s Public Image Is Hurting Tesla
A study by Morning Consult shows that Musk’s controversial behavior is damaging Tesla’s brand, particularly in Europe and Canada. Meanwhile, China remains a crucial market, where Tesla needs to maintain a strong position.
In the U.S., the situation is more complex. While Musk garners support from anti-government spending voters, he's losing favor among high-income consumers—the ones most likely to buy a Tesla.

🧪 Lack of Innovation, Rising Competition
Experts say Tesla is falling behind in innovation. Prof. Peter Wells of Cardiff University believes Musk has failed to deliver new products to keep the brand competitive.
Meanwhile, the competition is heating up:
Kia and Hyundai are leading the pack with reliable, high-quality EVs.Chinese automakers like BYD, Xpeng, and Nio are rapidly expanding, offering both affordable and luxury EVs.
While others deliver, Tesla continues to promise. Musk recently claimed robotaxi service would launch in Texas by June, echoing similar promises made since 2019—none of which have materialized. Tesla’s “Full Self Driving” still requires drivers to keep their hands on the wheel.

🤹 Musk Overstretched: Tesla, SpaceX, X, and xAI
In addition to Tesla, Musk is juggling:
The social platform XHis AI company xAIAnd SpaceX, which recently struggled with its massive Starship rocket

Even Musk admitted to struggling with the workload in a Fox Business interview. Experts question if he still effectively runs Tesla day-to-day.

📉 Investors Losing Patience
Musk owns 13% of Tesla’s shares, worth over $95 billion, making him nearly untouchable. Yet some investors are speaking up—including Ross Gerber, a longtime shareholder who now calls for Musk to step down.
Analysts agree: appointing a new CEO could help Tesla regain direction, separate Musk’s personal interests (like DOGE), and focus fully on the auto business.

🔮 What’s Next?
Tesla is still valued like a tech company, not a carmaker. But unless it delivers on promised innovation, investor confidence may begin to fade quickly.

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