Elon Musk is still facing one of her most difficult tests: restoring confidence in Tesla’s brand. The electric car manufacturer dropped its profits up to 71 percent in the first quarter of 2025, which is largely run by a backlash against the political affiliation and controversial role of Kasturi in the administration of President Donald Trump.
According to the European Automobile Manufacturers Association (ACEA), sales of Tesla vehicles have declined rapidly throughout European Europe, with a decline of 45 percent in the European Union and 62 percent declines in Germany alone in Germany. The showrooms in Europe and America have become aiming for the cutting of public sector and the support of musc for far-flung data abroad and exclusion of exclusion and boycott operations. In Milan, the protesters hung Kasturi in the effigy, while in Berlin and London, the protesters labeled the Tesla vehicles as “swasts”.,
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Despite these failures, Musk has intended to focus back to shifting in Tesla. During Tuesday’s earnings call, he announced a plan to reduce his time to work for the “government’s efficiency department” – a post that he puts under Trump’s administration – just one or two days per week starting in May. Tesla’s shares increased by about five percent after the announcement.
Musk dismissed claims that political disputes were harming the brand, instead the model Y’s analysts blamed the recent decline on the production stop due to upgradation, however, not convinced. JP Morgan described the situation as one of the “unprecedented brand damage”, while Tesla’s Dan Evece, a long -time supporter of Tesla, called it a “fully developed crisis”.
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Reducing Tesla’s crises is the rise of aggressive competition, especially from the Chinese vehicle manufacturer byd, developing ultra-fast charging batteries. European manufacturers are also rolling new models with advanced technology, further food in Tesla’s market share. In the US, Tesla’s dominance has slipped, its EV market share has come down by 50 percent.
Meanwhile, Tesla has continued his hopes on autonomous driving. Musk confirmed that its robotaxi service would be launched in Austin by June, despite that Google’s Wemo had already offered millions of drivers without drivers in many American cities. Musk insisted that the software update would soon allow the current Teslas to operate autonomously, although such promises have been made – and remembered – first.
The evaluation of Tesla is sublime, trading at more than 100 times its estimated income, making the company highly unsafe for more failures.
