Tesla’s Turbulent Turn
By Quinn Que
How Musk’s Political Ventures Put America’s EV Giant in Jeopardy
Editor’s note: The opinions expressed here are those of the authors. View more opinion on ScoonTV
Over the last few months, Tesla has been embroiled in a literal and metaphorical firestorm that would make many corporate executives dive for the nearest bunker. Sales are shaky, the stock wobbling, protests erupt at showrooms worldwide, and videos of Teslas being set on fire are racking up millions of views across social media. This raises the question everyone’s asking: Has Elon Musk crashed his electric empire?
A key facet of the story is that Musk was largely canceled by the same people who once worshiped at the altar of Tesla. The company was once adored as a poster child of the climate-conscious elite, hailed as the premier eco-friendly automaker and cornerstone of progressive politics. Let’s break down how we got here, what’s happening, and where things might go from here.
The Facts Behind Tesla’s Downward Spiral
The numbers tell a sobering story. Tesla’s registrations have fallen 62% in Britain while U.S. sales dropped more than 13% in the first quarter of 2025, the lowest such reversal ever in its history. Although Tesla remains the dominant EV brand in the United States, it sold 50k fewer cars than this time last year. Tesla’s U.S. sales declined 8.6% year-over-year.
Though the Model Y (64,051 units) and Model 3 (52,520 units) continue to be the top-selling EVs in America, Tesla’s controversial Cybertruck sold just 6,406 units in Q1. Meanwhile, competitors like Chevrolet saw impressive growth, with sales up 114.2% compared to last year, largely driven by the new Equinox EV. Things are even worse overseas, as Chinese competitor BYD has been eating Tesla’s lunch, maintaining a dominant lead in various non-US markets, with roughly 20% market share globally vs a shrinking Tesla. The embattled Musk company, once the global leader, fell to a 10% market position internationally this year.
What makes these figures particularly striking is that they come at a time when EV sales are increasing overall. The United States EV market grew by 11.4% since 2024, and global EV deliveries grew by more than 26% since 2023. This clearly shows that even as the interest in electric vehicles has only gone up, Tesla’s specific problems have weakened its position in an otherwise hot industry.
Musk’s Political Activities and Their Impact
Musk’s public image had already begun to lose its luster after he’d morphed into a global supporter of rightwing political parties, but the tension accelerated after the 2024 election of Donald Trump as President of the United States. Musk transitioned from a high profile supporter to an official member of the President’s new administration, becoming an advisor and right hand man with unexpected authority.
Repeatedly heralded as the de facto head of a new governmental organization, the “Department of Government Efficiency” (DOGE), whose name was inspired by a crypto meme-coin, Musk immediately set about throwing his weight around. Without regard for the fact that his “Department” was never ratified by Congress, DOGE nonetheless received wide latitude to access government data and direct changes to the federal budget. Musk’s role mainly involved making sweeping cuts across federal agencies, which quickly drew criticism.
Constitutional experts questioned the very legality of Musk’s moves. Government workers, many of whom lost their jobs in the ensuing tumult, have felt betrayed by Musk. And the general public often just doesn’t know what to make of all the chaos. Some see Musk’s actions as living up to the title of his legally nebulous initiative, others think the antics have only made things worse in Washington and beyond.
The backlash intensified when Musk began publicly criticizing presidential policies and cabinet members, unusual behavior for an advisor or appointee. The Wisconsin Supreme Court election on April 1 marked a turning point when Musk’s $20 million donation to a Trump-backed candidate backfired spectacularly, driving more Democratic voters to the polls.
By April 22, Musk announced he was scaling back his government work to focus on Tesla. This retreat came as the company was already facing serious challenges, with reports emerging that the board was considering replacing him as CEO. There may not be a firing to go with the smoke, however, as Musk himself, alongside board member Robyn Denholm, categorically denied these reports.
Tough Times at the Office
The question on everyone’s mind: What is Tesla’s current position on Musk? The situation is delicate and unprecedented.
Musk remains deeply intertwined with Tesla’s identity and vision. His engineering prowess and ambitious goals for autonomous driving have been central to the company’s appeal. Many investors still believe in his long-term vision despite recent missteps. Even so, the board has clear fiduciary responsibilities to shareholders.
With sales declining for the first time in Tesla’s history and profit margins shrinking, there is blood in the water. Musk’s status seems solid for the moment, but he and his company likely can’t weather too many quarters like they’ve had recently, at least not without major changes as a result.
What further complicates matters is Musk’s involvement in multiple companies. His attention is divided between Tesla, SpaceX, Twitter (officially rebranded as X), Neuralink, and The Boring Company. During recent earnings calls, Musk appeared distracted by a range of business matters, further alienating investors. The stock market has reacted accordingly, with Tesla shares experiencing significant volatility. Investors seem to question whether Musk’s divided attention and controversial political antics are worth the trouble.
One possible outcome would be a compromise where Musk remains involved but with reduced operational control. Tesla could appoint a new CEO while Musk transitions to a different role, perhaps as executive chairman or chief technology officer. He has already done similar moves at some of his other ventures, installing alternate leaders/figureheads like Linda Yaccarino as CEO of X (Twitter) and Amy Gleason as the Acting Administrator of DOGE.
The Future of Tesla
Whatever happens with Musk’s leadership, Tesla faces a challenging road ahead. The company must navigate multiple crises simultaneously: repairing its brand image; addressing product criticisms; countering increasing competition; and managing the fallout from protests, boycotts, and even acts of vandalism against its vehicles.
The more peaceful, but still strident “Tesla Takedown” movement has emerged as a grassroots protest effort, organizing demonstrations at Tesla showrooms across the globe. Protesters urged consumers to divest from Tesla by selling their vehicles and stocks. They do not advocate violence, but do believe Tesla must be pressured to make changes, mainly by firing Musk.
A recent international poll revealed that 31% of Tesla drivers reported selling or considering selling their cars specifically because of Musk’s political activities. This consumer exodus has been accompanied by incidents of the aforementioned vandalization of Tesla vehicles and facilities, which the FBI has labeled as acts of domestic terrorism.
For Tesla to recover, it will need to refocus on its original mission of promoting sustainable energy through compelling, affordable electric vehicles. Since global dominance is likely a lost cause, the domestic market will be particularly crucial as increasing tariffs and trade tensions intensify. Tesla’s U.S. manufacturing capacity gives it an advantage over foreign competitors, but only if it can reconnect with American consumers.
Refocusing on the Mission
The Tesla story stands as a cautionary tale about the risks of entangling business leadership with political identity in an increasingly polarized society. When a CEO becomes a divisive figure, a company’s products can transform into cultural flashpoints, symbols in broader ideological battles.
Tesla now stands at a critical crossroads. Its long-term success no longer hinges solely on the vision or visibility of Elon Musk, but on the company’s ability to return to its foundational mission, designing and building electric vehicles that appeal directly to American consumers. Amid growing political scrutiny, intensifying market competition, and internal organizational strain, Tesla faces a defining test.
The months ahead will be decisive. Tesla’s resilience, adaptability, and strategic clarity will determine whether it can navigate this complex landscape or be overtaken by it. Whether the company, and its polarizing chief executive, can rise to meet this moment remains an open question. In the end, Tesla must decide whether it wants to be a cult of personality or a car company built to last.
Curtis Scoon is the founder of ScoonTv.com Download the ScoonTv App to join our weekly livestream every Tuesday @ 8pm EST!
