Elon Musk Confirms the Rumors and Nothing Will Be the Same at Tesla

Elon Musk and Tesla are going through a critical moment: sales have fallen, the stock market value has plummeted, and the company's image is more deteriorated than ever. Musk's political decisions, particularly his support for Donald Trump, have caused a strong negative reaction. All of this is affecting the company, which is facing one of its worst crises.

Million-Dollar Losses in the Stock Market

In the first three months of 2025, Tesla suffered a 13% drop in sales, which represents a strong blow. The company also lost more than 600 billion dollars in the stock market since January, when Trump assumed the presidency. Tesla's value has dropped 53% from the all-time high reached in December 2024.

Although Tesla remains much more valuable than Toyota, the world's leading manufacturer, the current results are concerning. Musk has acknowledged that the transition between models has been difficult and caused production losses due to the upgrade of their factories. However, what is most affecting the company are the side effects of his personal and political decisions.

The Break with Trump and Tariffs

Musk and Trump have been closely related for years, but recently, Musk has taken a turn in his stance. Last Saturday, Elon Musk expressed his hope that the United States and the European Union establish a free trade zone without tariffs. This position goes against the protectionist strategy that Trump promoted during his term.

Although this new stance might seem like an opportunity for Tesla, the reality is that Musk's company is already paying the costs of Trump's policy. In 2024, Tesla's sales fell for the first time in years, especially in California, which has historically been its strongest market. This state represents more than 50% of Tesla's electric vehicle sales, so the 12% drop in that region is a very serious symptom.

Musk's Social Crisis and Image Decline

Musk's political controversy has taken a high toll on his image. In a recent survey, only 35% of Americans had a positive opinion of Musk, while 53% rated him negatively. This has particularly affected potential electric vehicle buyers, a segment that now views Musk with greater distrust.

Additionally, his relationship with the far right in Europe has increased the rejection of Tesla in countries like the United Kingdom, Italy, and Germany. In these places, the drop in sales has been dramatic, with a 42.6% decrease at the beginning of 2025. This type of social reaction is contributing to Tesla's collapse in key markets.

The Competition and the Advancement of Brands Like BYD

Another factor affecting Tesla is the competition, especially from Chinese brands like BYD. In the first quarter of 2025, BYD sold more than one million cars, with a large percentage being electric. This has allowed BYD to advance rapidly and approach Tesla's leadership in the electric car market.

Experts predict that Tesla could see a drop in sales of between 5% and 9% this year. As Chinese brands gain ground, Musk and Tesla will have to adapt quickly to keep their dominant position in the market.