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Elon Musk’s antics have turned the Tesla brand toxic (PVBuzzMedia)
KEY POINTS
  • Tesla posted its first annual sales decline in over a decade, while competitors like BYD and Hyundai continue to gain market share.
  • Public protests against Elon Musk’s political actions have led to widespread vandalism of Tesla vehicles and infrastructure.
  • Tesla’s autonomous vehicle ambitions are under legal scrutiny, with class action lawsuits emerging over failed Full Self-Driving claims.

In parts of the U.S. and Europe, Tesla showrooms have turned into protest zones.

Charging stations have been torched. Vehicles have been defaced with graffiti and even swastikas. Four Cybertrucks were destroyed in a fire in Seattle. The backlash isn’t just visible — it’s visceral.

“Tesla used to be synonymous with the future,” said The Verge in a recent analysis. “Now, it’s turned toxic.”

Once the gold standard in electric vehicles (EVs), Tesla now faces a growing crisis: declining sales, public protests, and deep unease about the direction its CEO, Elon Musk, is taking the company — and the brand.

Sales Slide as Competition Rises

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Rear left side of the Tesla Model S. (Tesla)

In 2024, Tesla reported its first annual sales decline in over a decade. In California, its biggest U.S. market, sales fell 12 per cent. In China, the world’s largest car market, Tesla has posted five consecutive months of year-on-year sales losses. In Europe, public sentiment soured as protests erupted in showrooms across Germany and Italy.

Meanwhile, rival automakers are gaining momentum. EVs from Hyundai, Kia, Honda, and General Motors are rolling out with newer designs and better pricing. U.S. consumers bought a record 1.3 million electric vehicles in 2024 — a 7.3 per cent year-over-year increase — but Tesla’s share is shrinking.

“The lag in regular updates has opened a window of opportunity for Tesla’s competitors,” the analysis observed.

Tesla’s lineup is aging. The Model X turns 10 this year. The Model S is nearing 15. Both have seen only minor updates. While the Model 3 and Model Y were recently refreshed, Tesla hasn’t introduced a new mass-market vehicle in five years. Its newest offering, the Cybertruck, has already been recalled multiple times.

“Apparently, the stainless steel trim has been flying off,” the analysis added. “Guess it needs more glue.”

Autonomous Ambitions, Legal Uncertainty

Tesla’s future, according to Musk, lies in full autonomy, AI, and robotics. He has claimed that Tesla is “on the cusp of solving autonomy” — a promise he’s repeated annually for nearly a decade.

Tesla plans to launch robo-taxi pilots in Texas and California this year. But it lacks many of the permits needed to operate legally. Adding to the scrutiny, the company now admits that vehicles sold with Full Self-Driving (FSD) capabilities since 2016 are not actually equipped to be fully autonomous.

“That promise turned out to be completely false,” the analysis disputed. “Tesla would need to replace the onboard computer for some vehicle owners who bought the FSD package.”

Class action lawsuits have already begun, alleging that the company misled customers.

The Musk Effect

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With a massive net worth, Elon is the founder, CEO, and CTO of SpaceX; a co-founder, Series A investor, CEO, and product architect of Tesla Inc.; co-chairman of OpenAI; and founder and CEO of Neuralink.

Then there’s Musk himself. In 2024, he endorsed Donald Trump, committed $200 million to his campaign, and was later appointed “head of DOGE” by the incoming administration. At Trump’s inauguration, Musk performed what many saw as a Nazi salute — an image that went viral.

“Musk’s antics have turned the Tesla brand toxic,” the analysis concluded.

In response, a wave of targeted actions has followed. Protesters have defaced Teslas, fired shots at showrooms, and destroyed vehicles. Some Tesla owners are selling their cars at a loss. Others are de-badging them in protest.

Tesla’s board has felt the pressure. Several directors, including the chair, have sold over $100 million in stock since January. But in June, shareholders re-approved Musk’s controversial $56-billion compensation package.


What’s next?

Tesla’s path forward hinges on two promises: a next-generation affordable vehicle and a functioning robo-taxi network. But public trust — in the company and its CEO — is fading.

“After a certain point,” the analysis warned, “it’s not clear whether market forces still apply.”

Derick Lila
Derick is a Clark University graduate—and Fulbright alumni with a Master's Degree in Environmental Science, and Policy. He has over a decade of solar industry research, marketing, and content strategy experience.

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