Tesla’s fight for survival: Why Americans are abandoning the brand and Elon Musk
What do Molotov cocktails, protests, and mass share selloffs all have in common? They're all being used against Tesla because of its CEO's affiliation to the administration.
- American car brand Tesla is feeling the heat in reaction to Elon Musk's recent political moves.
- Teslas have been firebombed and vandalized, prompting an F.B.I. investigation.
- The company faces an existential threat despite producing some of the most competitive EVs on the market.
We live in a world where current events have truly become stranger than fiction at times. Tesla, once the electric vehicle darling, is now public enemy No. 1 in the eyes of millions of American car buyers.
Is this the result of a severe mechanical malfunction or product problem? No, Tesla's fall from grace is under no uncertain terms the result of its eccentric CEO's affiliation with the president of the United States. Elon Musk is no stranger to controversy, but tensions have reached an all-time high with the creation of DOGE.
The Department of Government Efficiency, Musk's brainchild, has been responsible for thousands of job cuts in the public sector. Whether or not you agree with the cuts or DOGE's methods, it's impossible to ignore Tesla's stock market nosedive. Tesla (TSLA) stock is down at least 34% year-to-date after an incredible start to the first quarter. The share price dipped below $222 as of April 8. Tesla stock reached record highs in late 2024, so how on Earth did we get here, and why do so many people suddenly hate Tesla?
America's love-hate relationship with Tesla
It may be easy to dismiss Tesla as a brand because of its CEO's antics, strong anti-union sentiments and lack of transparency with the press. Not to mention consistent promises during shareholder meetings and rollouts that often seem like dreams rather than achievable goals. Musk shoots for the moon, regardless of how hard the landing may be.
America's relationship with Tesla is an odd one, because on one end of the spectrum, the company is a true testament to the ingenuity of American engineering. After all, Teslas are easily some of the most American-made vehicles in the country. The company created huge plants in America employing thousands and pushing the envelope for the home team in the EV space.
Rivals like Rivian show plenty of promise, but no American company has been able to achieve as much success as Tesla in production and sales. Numbers don't lie, and Tesla outsold popular gas models from Honda, Stellantis and Toyota in 2024. In fact, it's the only electric vehicle to break into the top 25 best-selling vehicles of the year list in 2024. It dominated sales in states like California, Nevada, New Jersey and Washington.
Why are people attacking Tesla?
For an EV enthusiast, there are plenty of reasons to love the brand's products. That's why it was the bestselling vehicle in the world at a point in 2024, according to Statista. On the other hand, there's a nationwide attack on the once-beloved electric vehicle company, and it has everything to do with reactions to Musk's involvement with the government.
Americans are vandalizing Teslas at dealerships as well as in parking lots. Several videos of people keying Teslas have gone viral on social media platforms Instagram and X. Though some organized groups have peacefully protested against the brand, other bad actors are attacking Tesla owners on and off the road.
Such attacks are being categorized as domestic terrorism, according to Attorney General Pam Bondi. Furthermore, the FBI has created a task force to investigate and prevent anti-Tesla attacks, according to CNN. Musk has hinted that his involvement with DOGE would be temporary, but would his exit from the public sector be enough of a reprieve for the company's falling stock?
The future of Tesla in America
Tesla is an American company that produces competitive electric vehicles. Its stock has made plenty of investors big bucks over the past five years, boasting a massive 550% gain based on charts. Its network of electric vehicle chargers benefits thousands of drivers a day, especially because they can be used to charge non-Tesla EVs.
Tesla products have a place in the market, but there's a tangible distrust, skepticism and hatred for its CEO expressed by many Americans. Even shareholders have soured to the idea of Elon Musk at the helm.
Tesla could continue to achieve great things in America and internationally, in terms of products, sales and innovation. That said, its board has some serious thinking to do because consumer sentiment makes or breaks brands.