For a long time, it has been believed that Elon Musk has transformed Tesla into a beacon of innovation. But his slip into politics, particularly his collaboration with President Trump and his work within the federal government, has dragged Tesla into uncertainty.
For many Tesla buyers, the brand has lost its progressive sheen. And while Musk has long been the face of Tesla, the link has undergone a negative turn as billionaires oversee the massive layoffs and oversee the elimination of federal programs through government efficiency.
Tesla’s disappointing first quarter revenue shows how much the brand has gained as sales have weakened and uneven sentiment has declined by 71%, resulting in a 71% decline in profits. The company reported 336,681 deliveries in the first three months of 2025, down from 495,570 in the fourth quarter of 2024 and 386,810 in the first quarter of last year. This is out of the depths of 2024, where delivery is less than the previous year amid delays in production and rising EV competition.
For many, mask political activity has transformed Tesla into an iconic pariah. Tesla Trade-Ins hit a record high, but sales in Europe fell. Foreign leaders are seeking boycotts, and automaker stocks have lost about half their value since December. Meanwhile, protesters continue to gather outside Tesla showrooms, dealers and even charging stations to accelerate the devaluation of the automaker’s brand.
“They have certain important public image issues that they’ve never seen before in the industry,” Sean Tucker, lead editor of Kelley Blue Book, told TechCrunch.
Even Dan Ives, one of Tesla’s most unwavering bulls, asked Musk to focus less on politics and more on his business. And Musk said last month that he would take a step back from Doge, but he hasn’t given up either.
To combat this impact on Tesla, Musk is leaning towards a sales pitch that Tesla is not an automaker, perhaps an AI company that commercializes self-driving cars and humanoid robots.
The question is whether the Tesla brand can recover.
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Below are the moments TechCrunch continues to update, shaping the recognition of the Tesla brand and potentially lasting impact on its future.
Decreased sales in Europe
Tesla’s new car sales plummeted across Europe despite sales of electric cars made by other brands rising on the continent. In the first four months of 2025, Tesla sales fell 37.2% in Europe and 81% in Sweden from the previous year.
Traditionally one of Tesla’s biggest markets and based in one of its gigafactories, Germany has been heavily opposed to masks. In a recent survey of 100,000 Germans, 94% don’t buy Tesla, and sales data support it. In March 2025, Tesla’s German sales fell 42.5%. This was a slight increase from a slump in sales of 75% in February.
Inheritance
The Wall Street Journal reported in May that the Tesla board began searching for a potential successor to Musk around early April.
When the report was released, Tesla Chairman Robin Denholm declared the WSJ report “absolutely false.” In any case, the report raises questions about succession planning if mask-related brand devaluations continue. Musk said he would take a step back from Doge in Tesla’s first quarter revenue call, but importantly, he also said he would continue to work at the agency for the rest of President Trump.
Protests are officially risky
The “Tesla Takedown” protests are spreading around the world with the goal of encouraging people to stop buying Teslas and sell Tesla stock. As of the first quarter of this year, these protests have become an official risk for Tesla’s submission of regulations.
New risk factors in Tesla’s latest SEC filing warn that certain criticism has “stoked protests and some have spread to violence targeting our business, products and personnel.” Tesla’s lawyers also expanded the risky items, saying negative perceptions stemming from the protests and “can harm our brand and business (including sales), making it more difficult to raise additional funds if necessary.”
Customs Exposure
Tesla is the best car manufacturer to receive Trump’s car rate hit in the US, but the company is still exposed by its alliance with Musk’s president.
In April, Wedbush analyst Dan Ives reduced Tesla’s price target from $550 to $315. He also said that Musk’s relationship with Trump, and therefore his tariff policy, has not only influenced sales in the US and Europe, but also threatened Tesla’s popularity in China.
Magazine hat on the wheel
Recent research has found Musk’s political tendencies have lost clients who were historically Democrats, a Tesla base, but this change has given him a path to Republicans. One study, a researcher from Columbia University Northeastern University and a researcher from the University of Iowa, found that Musk Trump’s support fell to 10.2% before the likelihood of Republicans buying Tesla rose from 7%.
That sentiment may only increase amid the reciprocal support of Trump’s Musk and Tesla, including his free commercial at the White House on March 11th.
“I’ll stick to your stock.”
On the evening of March 20th, during an improvised, glitchy, live-streamed Tesla All Hand presentation, Musk told employees and investors to “stick to stocks” despite feeling “like Armageddon.”
“It’s very difficult for people in the stock market, especially those who look at the rearview mirror, most people, because we imagine a future where 10 million vehicles suddenly have 5-10 times more useful,” Musk said, noting that all existing Teslas have the hardware they need to turn into completely self-driving cars.
He advised employees to adjust the noise and focus on building a cybercab. This is a new priority. The CyberCab is a two-seater Robotakshi with no steering wheel or pedals. Current federal regulations do not allow mass production of such vehicles as they do not have human control, but Musks shows their intention to amend these rules.
He said the CyberCub manufacturing process is an engineering feat, a “fast appliance line” that “eventually we will be able to produce cars within five seconds.”
During the phone call, Musk also promised to produce around 5,000 Optimus robots this year. We believe this will become Tesla’s most valuable asset.
“The moment of truth”
On the same day as all the sudden hands, Tesla Bull Dan Ives wrote in a note that Mask’s involvement in the Doge led to “a moment of the Mask and Tesla brand tornado crisis.”
“If you agree or disagree with Doge, Musk is spending 110% of your time on Doge (not Tesla CEO) missing points.
Molotov cocktails and vandalism
Tesla showrooms, charging stations, facilities, and even privately owned vehicles have been hit by attack. In some cases, damage is minimal. It’s a car with spray paint and keys. In others, violence continues. The dealer is attacked by bullets and Molotov cocktails, and the charging station is on fire.
Musk responded by questioning why someone wanted to hurt Tesla.
Trump’s reaction has been more pointed out. He declared that any acts of violence that could include spray painting would be treated as domestic terrorism by the federal government.
“We’re looking forward to seeing sick terrorist thugs win 20 years of prison for what they’re doing to Elon Musk and Tesla. Perhaps they can serve them in El Salvador prisons, Trump said on his social media platform, Truth Social.
At the time of this writing, the Department of Justice has brought charges against three individuals allegedly responsible for the violent destruction of Tesla’s property.
Tesla takedown
As part of the Tesla Takedown movement, peaceful protests erupted across the country.
Protesters are showing up at Tesla dealers and showrooms to discourage people from buying Tesla cars. They also aim to encourage Tesla owners to sell their vehicles and Tesla shareholders of stock.
Despite these protests being peaceful, they are beginning to see the beginning of violent breakdowns, like the Florida men who drove their SUV into crowds outside the Palm Beach Tesla dealership in March.
Relationship with proud boys
Thousands of people join the Tesla Takedown in showrooms across the country during the final weekend of March. The crowd elicited a small number of rebellion in some areas where people became people, primarily by Magazine supporters, wired reports. Among them were far-right extremists, including proud boys and members of armed militias.
“Roman” salute
While speaking at a rally to celebrate Trump’s inauguration in January, Musk did what many perceive as not one but two Nazi salutes.
This damage is only amplified by Musk’s voice support for the far-right German political party AFD, and his history of sharing anti-Semitic posts.
Shortly after the salute, activists projected the image of Musk salute on Tesla’s Berlin Giga Factory, along with the word “Hail.”
Bide breakthrough
One of Tesla’s biggest competitors, China’s BYD is promoting a major breakthrough in charging. The automaker said this week that it can charge a new car in five minutes, giving it a huge competitive edge against Tesla and in fact other EV manufacturers.
China is one of Tesla’s biggest markets, but BYD continues to bully car makers on their own lawns. BYD recently unveiled an advanced driver assistance system for the “God’s Eye” that resembles Tesla’s Autopilot and FSD.
BYD continues to impress consumers with its high-tech range EVs and hybrids, once again outpacing Tesla’s revenue. In 2024, BYD reported revenue of $100 billion compared to Tesla’s $97.7 billion.
I remember the aging lineup and cybertruck
Tesla has been suffering from an aging lineup for years. Cybertruck was meant to be the next big bet for automakers to prove they could offer innovative new models. And in fact, trucks are popular among American buyers.
Still, Tesla has issued eight CyberTruck recalls since launching the vehicle in November 2023. Most recently, Tesla had to remember 46,000 Cybertooks due to the outer steel trim panels on the side of the windshield, which were clogged with supergrats and seemingly could just peel off.