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Here are the moments shaping perception of the Tesla brand
Elon Musk has long been credited with wrick Tesla into a beacon fire of innovation , the visionary who crowd the world into an era of electrification . But his slide into politics — specifically his alignment with President Trump and activities within the Union politics — has dragged Tesla into dubiety .
For many would - be Tesla buyers , the brand name has lose its reform-minded brilliancy . And while Musk has longbeen the face of Tesla , that link has taken a negative turn as the billionaire oversees mass layoffs and the excretion of federal programs via theDepartment of Government Efficiency .
Tesla ’s disappointingfirst - quarter earnings , which saw gain drop 71 % amid weakened sales and anti - Musk sentiment , demonstrate just how much the sword has fall out of favour . The companyreported336,681 livery in the first three month of 2025 , down from 495,570 in Q4 2024 and 386,810 in the first fourth of last yr . That ’s off the back of anunimpressive 2024 , which saw few deliveries than the year prior amid production time lag and increased EV competitor .
For many , Musk ’s political activities have turn over Tesla into a symbolic pariah . Tesla trade - ins have polish off record highs , while sales in Europe have shed . strange leaders are calling for boycotts and the automaker ’s stock price has lost about half its value since December . All the while , objector continueto assemble outside Tesla saleroom , dealerships , and even charge stations in an movement to accelerate the automaker ’s firebrand devaluation and with it , they desire , Musk ’s wealth .
“ They have a sure pregnant public paradigm problem that ’s really something we have n’t seen before in this industry , ” Sean Tucker , lead editor at Kelley Blue Book , tell TechCrunch .
Even one of Tesla ’s most unwavering bulls , Dan Ives , hasbeggedMusk to center less on politics and more on his business “ or else alas coloured times are ahead for Tesla . ” And even though Musk aver last calendar month that he ’d take astep back from DOGE , he ’s not reach up on it either . To battle the impression this might have on Tesla , Musk has and likely will extend to lean on his sale pitch that Tesla is n’t an car maker , it ’s an AI party , one that will someday commercialize autonomous vehicles and humanoid robots .
The enquiry now is whether the Tesla brand can recoup .
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Below are the moments , which TechCrunch will persist in to update , that are mould perception of the Tesla steel and may have a lasting core on its future .
Drop in European sales
Tesla ’s fresh railroad car gross revenue haveplunged across Europe , even as cut-rate sale of galvanic cars made by other brands jump on the continent . In the first four months of 2025 , Tesla sales dropped 37.2 % in Europe , and in Sweden , they dropped 81 % twelvemonth - over - yr .
Germany , traditionally one of Tesla ’s largest market and home to one of its gigafactories , has turned against Musk in a big way . A recent survey of 100,000 Germans found94 % would never purchase a Tesla , and sales information backs that up . In March 2025 , Tesla ’s Germany sales weredown 42.5 % . A tenuous gain from the 75 % sales falling off in February .
Succession
The Wall Street Journal report in May that Tesla ’s board began searching forMusk ’s likely successorsometime around former April as Musk waded further into Washington to slash politics disbursement .
When the report came out , Tesla chair Robyn Denholm declared the WSJ ’s coverage to be “ utterly false . ” Either way , the report does parent questions about succession planning if Musk - associated brand devaluation continues . Musk said during Tesla ’s first - quarter net profit call that he would take a step back from DOGE , but , importantly , he also said he ’d continue solve for the agency for theremainder of Trump ’s presidentship .
Protests are officially a risk
“ Tesla Takedown ” objection have been spreading around the existence with the goal of encouraging mass to stop bribe Teslas and to sell their Tesla stock , which protesters say will injure Musk where he contain most of his power — in his pocketbook ( more on those below ) . As of the first quarter of this year , those protest have formally become anofficial riskin Tesla ’s regulatory filings .
The new risk factor in Tesla ’s previous SEC filings warn that sealed criticism “ has incited protest , some escalating to violence targeting our surgical procedure , products and personnel office . ” Tesla ’s lawyers also amplify what ’s at risk , saying negative perception resulting from the protest , along with the broader critique of the company , “ may harm our mark and our business ( include sales ) and make it more difficult to arouse extra funds if call for . ”
Tariff exposure
While Tesla is the automakerbest positionedto parry the shock of Trump ’s self-propelled tariffs in the U.S. , the company is stillexposeddue to Musk ’s alliance with the president .
In April , Wedbush analyst Dan Ives cut Tesla ’s cost target to $ 315 , down from $ 550 , once again citing Musk ’s politics create a brand crisis for the automaker . He also observe that Musk ’s tie-up with Trump , and therefore his tariff policy , are not only impress sales in the U.S. and Europe , but also threatening Tesla ’s popularity in China , “ further driv[ing ] Chinese consumers to buy domestic such as BYD . ”
A MAGA hat on wheels
While recent studies found that Musk ’s political leanings have suffer him customer in what has historically been Tesla ’s basis — Democrats — the shift has garnered him street cred with Republicans . One studyfrom researchers at Northeastern University , Columbia University , and the University of Iowa find that Republicans ’ likelihood to buy a Tesla moved up from 7 % before Musk ’s Trump endorsement to 10.2 % after .
That sentiment might only increase amid Trump ’s reciprocal endorsement of Musk and Tesla , including hisfree commercialat the White House on March 11 .
“Hang on to your stock”
At an impromptu , glitchy , livestreamed Tesla all - hands presentation on the evening of March 20 , Musk told his employees and investors to “ hang on to [ their ] breed ” despite it feel “ like Armageddon . ”
“ It ’s very difficult for people in the stock market , especially those that look in the rearview mirror , which is most the great unwashed , to suppose a future where short a 10 million vehicle fleet has five to 10 times the usefulness , ” Musk said , denote to thenow - defunct claimthat all existing Nikola Tesla have the hardware necessary to release into fully ego - driving car with a simple software update .
He notify employees to tune out the noise and focus on building the Cybercab , which would be the new priority . The Cybercab is a two - seater robotaxi with no steerage wheel or pedals . Current federal regulation do n’t allow for the volume production of such vehicles because they do n’t have human controls , but Musk has signal an intent to remedy those rule .
He observe that the Cybercab fabrication mental process would be a exploit of applied science , a “ gamy - f number consumer electronics line ” that “ will move so fast that … it ’ll be able to produce a car , ultimately , in less than five seconds . ”
During the call , Musk also promised to produce about 5,000 Optimus robots this year , which he think will be Tesla ’s most valuable plus .
“Moment of truth”
On the same day as the sudden all - hands , Tesla bullDan Ives wrotein a note that Musk ’s affair in DOGE has lead to a “ brand tornado crisis moment for Musk and Tesla . ”
“ If you match or discord with DOGE it misses the point that by Musk spending 110 % of his time with DOGE ( and not as Tesla CEO ) since President Trump get back into the White House this has basically release Tesla into a political symbolisation … and this is a bad thing , ” Ives wrote .
Molotov cocktails and vandalism
Tesla showrooms , charging stations , facilities , and even privately owned vehicle have been hit with attacks . In some cases , the damage is minimum — some spray paint and a keyed car . In others , violence has ensued . Dealerships have been off with bullets and Molotov cocktail , and charging stations have been set on fire .
Musk has responded byquestioningwhy anyone would want to hurt Tesla .
Trump ’s response has been more pointed . He has declared that any acts of violence — which could include spray - painting — would be treated by the Union authorities asdomestic terrorism .
“ I look onward to watching the sick terrorist thugs get 20 - year pokey prison term for what they are doing to Elon Musk and Tesla . Perhaps they could process them in the prison of El Salvador , which have become so latterly famous for such adorable conditions ! ” Trump order on his societal media political platform , Truth Social .
As of the clip of this committal to writing , the Department of Justice hasbrought charges against three individualswho are allegedly responsible for violent destruction of Tesla properties .
Tesla Takedowns
Peaceful protests have also erupt across the country as part of theTesla Takedownmovement .
Protesters have been showing up at Tesla dealership and saleroom to test to deter multitude from buying Tesla cars . They also take to promote Tesla owner to trade in their vehicles and Tesla stockholders to trade their shares .
Despite these protests being passive , we ’re beginning to see the start of tearing counterprotests — like the Florida human being whodrove his SUV into a crowdof protestors outside a Palm Beach Tesla franchise in March .
Associating with the Proud Boys
Thousands of multitude joined in Tesla Takedown protests the last weekend in March at showrooms across the country . The crowds draw little numeral of counterprotests in some regions that were people mainly by MAGA supporter , Wired reports . Among them were far - right extremist , including members of the Proud Boys and armed militia .
The “Roman” salute
While speaking at a rally observe Trump ’s startup in January , Musk did what many have perceived to be not one , but two , Nazi salutes .
The damage has only been magnify by Musk ’s outspoken support for the far - right German political company AfD , as well as his history ofsharing antisemitic post .
Shortly after the salute incident , activistsprojected an imageof Musk doing the salute , along with the word “ Heil , ” onto Tesla ’s Berlin gigafactory .
BYD breakthroughs
One of Tesla ’s bighearted challenger , China ’s BYD , has been touting significant breakthroughs in charging . The automaker said this week that its new machine can becharged in five minutes , which would give it a huge free-enterprise boundary over Tesla and indeed any other electron volt maker .
China is one of Tesla ’s largest market place , but BYD is continuing to swagger the automaker on its home turf . BYD recentlyunveiled its “ God ’s Eye”advanced driver - assist scheme — cognate to Tesla ’s Autopilot and FSD — that will be instal at no additional cost on its entire EV lineup , include its ultra - cheap $ 9,600 Seagull hatchback .
BYD continues to move consumers with its high - technical school range of EVs and hybrids and has once againsurpassed Tesla on gross . In 2024 , BYD reported $ 107 billion in revenue compared to Tesla ’s $ 97.7 billion .
An aging lineup and Cybertruck recalls
Tesla has languish with an aging lineup for years . The Cybertruck was meant to be the automaker ’s next big bet that would prove it ’s still capable of deliver forward-looking new models . And indeed , the hand truck has been popular among American buyers .
Still , Tesla has release eight callback on the Cybertruck since launch the fomite in November 2023 . Most recently , Tesla had torecall 46,000 Cybertrucksbecause of an exterior steel trim panel on the side of the windscreen that looks like it was stuck on with superglue and can just peel off .
