Tesla Suffers Record Losing as Musk's Reputation Collapse

Tesla has suffered a seven-week losing streak, its longest in history. Since its $488 peak in mid-December 2024, the stock has nearly halved in value, leading to Tesla's exit from the trillion-dollar club.

So, what went wrong? The answer largely points to Musk.

U.S. Backlash: Government Layoffs Spark Public Fury

Mass layoffs in the federal government, led by Musk's Department of Government Efficiency, have triggered widespread outrage. Many Americans are now boycotting Tesla in response to Musk's actions. 

Since Trump took office, the U.S. has witnessed more than ten violent attacks targeting Tesla: In Massachusetts, a Tesla Supercharger station was set on fire. In Oregon, a Tesla dealership was shot at, with a suspect throwing a Molotov cocktail inside. Protesters have gathered outside Tesla showrooms, voicing anger against Musk.

Europe Turns Against Musk, Tesla's Sales Plummet

Musk's open support for far-right parties has severely damaged Tesla's reputation across Europe.

On February 23, during Germany's federal elections, Musk publicly endorsed the far-right AfD party on X. This infuriated German voters, leading to a Tesla factory being set on fire, halting production.

Similar backlash has erupted across Europe: In France, a Tesla store in Toulouse was torched, destroying 12 vehicles—police suspect arson.

French taxi drivers using Teslas reported losing customers due to Musk's political stance.

In Portugal, protesters gathered outside Tesla's Lisbon showroom, condemning Musk.

Many European Tesla owners now place stickers on their cars reading, I bought this before Musk lost his mind, to avoid being targeted.

As a result, Tesla's European sales have collapsed: February deliveries fell 46% YoY, nearly halving. In Germany, sales plunged by 76%, even as the European EV market grew over 30%.

FSD Fails in China, Tesla Struggles Against Local EV Giants

While Chinese consumers are less concerned about Musk's politics, Tesla is facing mounting product issues.

Tesla's Full Self-Driving (FSD) system finally launched in China but failed real-world tests:

Poor recognition of China's traffic light system—FSD ran two consecutive red lights. Frequent illegal lane changes, solid line crossings, and near-collisions. Under China's strict traffic laws, FSD would likely result in immediate license suspension.

Meanwhile, Chinese EV makers like BYD, NIO, and XPeng are rapidly gaining ground. BYD has overtaken Tesla as the world's top EV seller. Tesla's brand value and FSD appeal matter less to Chinese buyers, who prioritize cost and reliability. Tesla's premium pricing makes it vulnerable as China's EV price war intensifies.

The result? Tesla's China sales plunged to 30,688 units in February, down 50% both month-over-month and year-over-year.

Tesla's Future: Can It Survive Musk's Decline?

Musk's tarnished reputation is dragging Tesla down. His focus on politics and government restructuring has distracted him from running Tesla.

Unless Musk rebuilds his credibility and refocuses on Tesla's core brand, the company faces a bleak future. Winning back consumers requires more than controversy—it requires great cars.