Elon Musk's Future at Tesla in Question Amid Sales Decline and Political Distractions

Elon Musk's leadership of Tesla is being questioned by an increasingly loud chorus of critics. Tesla's sales have fallen sharply, tied to Musk's support of Donald Trump and far-right parties, and his recent falling out with the president has scotched any chance of favorable treatment for the company. Investors have asked Musk to commit to working full-time at Tesla, amid concerns over his absence and the company's long-term problems.

Elon Musk's leadership of Tesla has been under increasing scrutiny from critics, as the company faces significant financial challenges. Tesla's sales have plummeted, with the company reporting the two largest drops in sales in its history in the last two quarters [1]. The primary driver of these sales declines is Musk's support for Donald Trump and far-right parties, which has alienated a significant portion of the market.

Musk's recent falling out with Trump has further exacerbated the situation. The former president, who was once a close ally of Musk, has accused him of going "completely 'off the rails'" [1]. This political involvement has drawn criticism from investors, who have called for Musk to focus more on the company's long-term problems. Analysts at Wedbush Securities have maintained their buy recommendation for the stock but have expressed concern about Musk's political activities [1].

The financial outlook for Tesla has worsened significantly. The company could be back to losing money, with the removal of the $7,500 tax credit for electric vehicle buyers and the elimination of financial penalties for automakers that fail to meet federal emissions targets [1]. These changes have removed a significant profit driver for Tesla, as the sale of regulatory credits had added $10.6 billion to the company's bottom line since 2019 [1].

Tesla's market share has also been declining, with global sales down by 13% in each of the first two quarters of this year [1]. This decline is partly due to increased competition from Western and Chinese automakers, with Chinese automaker BYD poised to surpass Tesla in global annual EV sales this year [1]. The expiration of the $7,500 tax credit for electric car buyers in October is likely to further weaken demand for Tesla's vehicles [1].

Musk's political activities have also had a significant impact on Tesla's sales. Protests against Musk's political views have been held outside Tesla showrooms, and the company's shares have been on a downward slide since the early months of this year [1]. Musk's social media antics have also contributed to the stock's volatility, with the company's stock losing 6.8% of its value on Monday, July 8, 2025 [2].

Investors have asked Musk to commit to working full-time at Tesla, amid concerns over his absence and the company's long-term problems. However, Musk has largely downplayed the recent bad news, focusing instead on the company's future in robotics, artificial intelligence, and self-driving taxis [1]. Despite Musk's promises, the company's taxi service has been limited to a select group of customers in Austin, Texas, and has faced its share of problems [1].

In conclusion, Elon Musk's leadership of Tesla is facing increasing criticism, as the company struggles with declining sales and a worsening financial outlook. The company's market share has been declining, and the expiration of the $7,500 tax credit for electric car buyers is likely to further weaken demand for Tesla's vehicles. Investors have asked Musk to commit to working full-time at Tesla, amid concerns over his absence and the company's long-term problems.

References:
[1] https://www.cnn.com/2025/07/08/business/tesla-troubled-financial-outlook
[2] https://slate.com/technology/2025/07/elon-musk-donald-trump-tesla-stock-america-party.html