Tesla, once hailed as the undisputed leader in the electric vehicle (EV) market, is now facing a series of challenges that threaten its dominance.

A confluence of plummeting sales, violent protests, political controversies, and fierce competition has raised significant questions about the company’s future. As Elon Musk’s personal brand becomes increasingly intertwined with Tesla’s public image, many are wondering whether the company can weather these turbulent times. With Tesla’s stock tumbling, protests erupting across major cities, and the rise of formidable competitors, the question remains: Is Elon Musk becoming Tesla’s biggest risk?

A Sharp Decline in Sales: The Global Crisis

Tesla’s once-meteoric rise has hit a sharp downturn, with sales in key international markets taking a severe hit. In Europe, the company’s sales in Germany fell by an alarming 76%, while France saw a decline of 45%. These drops are particularly significant, as the European market has been a crucial area of growth for Tesla. Once a darling of the European green transition, Tesla now faces mounting challenges as traditional automakers and new entrants ramp up their own EV production capabilities. The global shift to electric vehicles has intensified competition, but Tesla’s market share has noticeably diminished.

In Australia, Tesla’s sales plummeted by 71% in February 2025, signaling deeper issues in yet another key market. The decline in Australian sales follows a pattern seen globally, with Tesla struggling to maintain its dominance in key international markets. Perhaps the most significant blow to Tesla’s global standing has been in China, where sales of Tesla vehicles manufactured in the country dropped 49% globally. As the Chinese market has long been seen as a growth engine for the company, this sharp decline underscores the mounting pressure Tesla faces on the global stage.

Violent Protests: A Brand Under Siege

In addition to plummeting sales, Tesla is now grappling with violent protests across key locations, further eroding its brand image. In Milan, Italy, for instance, protests turned violent as demonstrators clashed with police outside Tesla showrooms. Activists, primarily environmentalists, have raised concerns over the company’s environmental record, accusing Tesla of prioritizing profit over sustainable practices.

Similar protests have erupted across other European cities, including Paris and Madrid, as well as in the U.S. Tesla’s once-iconic image as a forward-thinking, environmentally responsible brand is now under siege. The protests have escalated, with demonstrators accusing Tesla of greenwashing and supporting controversial political movements. In Europe, Musk’s growing political affiliations with far-right groups and his involvement in the Trump administration have further inflamed the protests, turning them into broader anti-Tesla demonstrations.

The anger from protesters is also linked to Musk’s personal views and political leanings, which are seen as inconsistent with Tesla’s original message of sustainability and innovation. As Musk’s political ties—especially his support for far-right parties in Europe—gain more attention, Tesla’s image as a socially responsible company is increasingly questioned. These protests have led to a backlash that risks further tarnishing Tesla’s once-stellar reputation.

Price Cuts and Profit Squeeze: The Impact of Competition

With sales slumping across key regions, Tesla has resorted to price cuts in a bid to remain competitive. However, these price cuts come at a cost. The once high-profit margins of Tesla vehicles are now being squeezed, which has led to concerns about the company’s long-term financial health. Investors have taken notice, and Tesla’s stock has tumbled in response to the diminishing margins.

One of the most significant factors contributing to Tesla’s downward spiral is the rise of competition in the EV market. The Chinese automaker BYD has now surpassed Tesla in global EV sales, marking a clear sign that Tesla no longer has the market cornered. As competitors such as BYD, Volkswagen, and traditional automakers like General Motors and Ford ramp up their own EV production, Tesla finds itself in a fierce race to maintain market share. With growing competition offering more affordable alternatives, Tesla’s reliance on price cuts to stay competitive is threatening to erode the brand’s premium reputation.

Musk’s Political Ties: A Brand in Crisis

Tesla’s struggles are not just economic—they are also deeply political. Elon Musk’s increasing political ties and controversial public statements have begun to tarnish the company’s once-unassailable brand image. Musk’s role in the Trump administration and his vocal support for far-right parties in Europe have sparked protests not only across the U.S. but also in major cities in Europe. These political affiliations are alienating key consumer groups, especially among younger, more progressive buyers who once saw Tesla as a symbol of innovation and environmental responsibility.

In Europe, where environmental concerns are at the forefront of many consumers’ minds, Musk’s political leanings are drawing increasing scrutiny. Tesla, long associated with clean energy, is now at risk of being seen as complicit in a political agenda that contradicts its image as a progressive, future-oriented company. The company’s ties to controversial political figures have triggered protests from environmentalists, activists, and employees, further undermining Tesla’s once-untouchable status.

Investor Panic: A Decline in Confidence

Tesla’s financial struggles and Musk’s political entanglements have sent shockwaves through the investor community. The company’s stock has taken a significant hit, and with it, investor confidence in the future of Tesla has begun to erode. Once considered one of the most innovative and disruptive companies in the world, Tesla now finds itself in a precarious position.

While Musk’s ability to pivot and innovate has been the driving force behind Tesla’s success, his increasing involvement in political controversies and the challenges facing Tesla’s core business are making investors uneasy. Many are questioning whether Musk’s vision for the future is still aligned with Tesla’s long-term goals, or whether his personal brand has become a liability that could jeopardize the company’s success.

Musk’s India Gamble: A New Hope or a Desperate Move?

In response to Tesla’s declining fortunes in Europe, Australia, and China, Elon Musk has set his sights on India as the next potential growth engine for the company. Musk has long been eyeing the Indian market, which presents significant opportunities given the country’s growing middle class and increasing demand for electric vehicles.

However, India is not without its challenges. The country’s infrastructure for EVs is still in its infancy, and local competition from established automakers, as well as emerging EV startups, could pose a significant threat to Tesla’s success. Furthermore, India’s regulatory environment and the complex political landscape could complicate Tesla’s entry into the market. Musk’s gamble on India may provide a much-needed boost to Tesla’s growth, but it could also end up being another costly venture in a long line of ambitious, but ultimately unsuccessful, expansions.

The Bigger Question: Has Musk Become Tesla’s Biggest Risk?

As Tesla grapples with a decline in sales, violent protests, a squeeze on profits, and a damaged public image, the question arises: has Elon Musk become Tesla’s biggest risk? His involvement in political controversies, combined with his increasingly erratic behavior and management style, has raised doubts about his ability to lead the company through these turbulent times.

Musk’s once-celebrated role as a visionary leader is now overshadowed by his divisive politics and the growing concerns surrounding Tesla’s long-term sustainability. While his audacious decisions and bold vision have undeniably transformed Tesla into the global EV leader, the very traits that made him an icon are now contributing to the company’s unraveling. Whether Musk’s gamble on India and his ability to navigate Tesla through a competitive EV landscape can secure the company’s future remains to be seen. For now, investors and consumers alike are left to wonder if Tesla can recover its former glory—or if it has already entered a decline from which it cannot return.

Conclusion: A Critical Crossroads for Tesla

Tesla stands at a critical crossroads. The company’s sales are plummeting across key global markets, protests are escalating into violent confrontations in major cities, and Musk’s political affiliations are further alienating consumers. The price cuts that were once seen as a strategic move to capture market share are now eroding Tesla’s profits and raising questions about its long-term financial health. While Musk’s focus on India offers a glimmer of hope, it remains uncertain whether this will be enough to turn the tide for Tesla.

As the EV landscape becomes increasingly crowded and Tesla’s challenges mount, the company must reassess its strategy, rebuild its brand, and address its internal and external crises. Whether Musk’s vision can once again propel Tesla to the heights of success or whether the company will continue to spiral into a crisis of its own making is a story that will unfold in the coming months. For now, Tesla’s fate is inextricably linked to the decisions made by Elon Musk, and whether his leadership will continue to be a driving force for innovation or a source of instability remains to be seen.