Analysis || The actions are falling, sales are falling, everything is falling in Tesla – and there are owners of Teslas who are ashamed to have them and who are undoing them. All of these headaches would be a serious problem even if the company had a normal CEO. That is not the case
Gravity may finally be catching Elon Musk with the fall of Tesla’s actions
Analysis of Allison MorrowCNN
A version of this article was published on CNN Business’s Newsletter. To receive it in your email, sign up for free
Elon Musk’s power taking in Washington DC has not been the fuel that investors expected for Tesla’s actions.
The shares have fallen more than 40% since January – erasing the entire Trump Bump that made the actions win more than 90% after election day. Musk, whose fortune is overwhelmed linked to his stakes in Tesla, personally lost 111 billion euros from his liquid heritage in the last three months.
What happened? Why did Musk’s rapid rise to oligarchic territory helped save his “baby” (as President Trump called Tesla during the bizarre press conference last week on lawn)?
There are two main reasons:
1. Tesla sales are falling to the bump worldwide and …
2. Your CEO is doing nothing to prevent him.
While Musk is hiding in the Eisenhower Executive Offices (EEOB) building looking for ways to break the federal government, Tesla’s main business is in crisis.
Last year, the company registered the first ever drop in global sales and this year does not seem much better. RBC Wall Street analysts, UBS, Goldman Sachs, Mizuho and JPMorgan have reduced their delivery predictions to the company.
In China, in particular, Tesla is fighting to compete with local automotive manufacturers. Last month, Tesla sales in China fell 49% over the previous year. Sales in Europe are also falling, especially in Germany, where consumers have been outraged by Musk’s support to an far right nationalist party with Nazi calls. Last month, sales in Germany fell 76% over the previous year.
The news is not improving for Tesla. The company’s actions received a double dose of bad news from China on Monday.
Tesla’s number one Chinese rival, BYD, revealed a new loading system that can give its latest 400 km -range car models in just five minutes – twice as fast as Tesla’s loading rate.
On the same day, Tesla also launched in China a month of free test of its “Full Self -Driving” software – a sign that the company is desperately trying to reverse the decline of market share.
Tesla’s shares fell 5% in the US on Monday and 5% more the next day, after the RBC dropped its target price in response to growing internal competition.
All of these headaches would be a serious problem for Tesla even though it had a normal executive director. But Tesla is directed by Musk, whose personal brand went from “Ok, he’s a little weird” a few years ago to “ok, he has been publishing racist and anti -Semitic conspiracy theories in 2025.
Tesla did not respond to a request for comment.
Last week, a CNN poll revealed that 53% of Americans have a negative opinion about Musk, while about 60% say Musk has neither the proper experience nor the proper discernment to make the type of radical cuts that their “department” is carrying out in the federal government.
Although Tesla remains the best -selling electric vehicle mark in the US, competition is warming and the authoritative turn to Musk’s right seems to be causing real damage.
The prices of the used Teslas are falling at a pace more than twice higher than the average car, according to a study of bullshit. The cars used in general registered a 2.7% decrease compared to the previous year, while the used Teslas decreased 7.3%. A used cybertruck is worth less 58% in the resale market.
Another Cars.com report reveals that while Tesla’s non -electric vehicles increased 12% over the previous month, Teslas surveys decreased by 7%.
“We have difficulty thinking of something analogous in the history of the automotive industry where a brand has lost so much value so quickly,” wrote JPMorgan analysts in a note to customers last week.
Adding fuel to the negative reaction is the “Tesla Takedown” movement, which began by activists and widespread on social networks, which argues that people sell Tesla vehicles, undo the actions and protest in exhibition rooms.
“I’m getting rid of this car because I’m ashamed to drive it,” Joe Romer, owner of Tesla in California, told Julia Vargas Jones of CNN. “I’m tired of Elon Musk and all this garbage that is happening.”
Even Dan Ives, a Wedbush technology analyst and historically one of the greatest leaders of the Tesla cheerleader, seems to be losing patience with Musk.
Last week, Ives wrote in a note to customers that, while maintaining the “superior performance” classification in Tesla’s actions, the investor’s patience is “exhausting a lot”.
CONCLUSION: Wall Street has been able to tolerate Musk because Tesla was a cutting -edge company with a product that many people wanted to buy. Investors can ignore all kinds of maneuvers if they are getting a good return on investment.
But what happens when Tesla is no longer the dominant actor in electric vehicles? And what happens when Musk is too busy trying to dismiss federal workers instead of solving the Tesla problem? This is the kind of questions that stirring investors at a time when they already have a lot of fuel for nightmares with Trump’s economic agenda.
Musk made his name synonymous with Tesla – a fact that served both when Tesla seemed unstoppable and Musk became the richest person in the world.
But Tesla no longer seems unstoppable and Musk no longer seems stable. This may become a toxic duo.
