The electric vehicle market is buzzing with turmoil as Tesla's stock has plummeted significantly over the past few months. This year began with the company facing overwhelming pressure, resulting in a staggering 55% drop in its shares since their peak in December, and a dip to around $218 on March 11. Tesla CEO Elon Musk is fighting to stabilize not just his company's stock but its public image as well, amidst growing backlash and concerns over falling sales.
The turbulence in Tesla's market share intensified after Musk's involvement with former President Trump drew criticism from a diverse range of political groups. During a recent company meeting streamed live on Musk's social media platform X, he encouraged employees to hold onto their shares despite devastating news cycles. "When you read the news, it feels like Armageddon," Musk told the employees, highlighting escalating issues such as vandalism against Tesla vehicles. He added, "I can’t walk by a TV without seeing a burning Tesla. I understand if you don't want to buy our product, but you don't need to burn it down. That’s a bit unreasonable." This commentary underscores the intensity of public sentiment against Musk and Tesla.
The sales for Tesla have taken a significant hit; particularly in Germany, where there has been a shocking 76% decline year-over-year. Across Europe and China, Tesla has seen drastic reductions in deliveries, attributed to Musk’s political affiliations and the subsequent customer pushback. The overall sales downturn presents a dire forecast for the company, suggesting that the public’s opinion is turning even further against it.
Musk’s challenges are compounded by widespread incidents of vandalism. This includes reported incidents where vehicles and charging stations have been attacked; there have been instances of Molotov cocktails being thrown into showrooms in areas like Salem, Oregon, and vandalism against charging stations across multiple states. As the FBI investigates the rise in vandalism, public figures, including U.S. Attorney Pam Bondi, have condemned these actions, labeling them as domestic terrorism. "Attacks on Tesla property are nothing other than domestic terrorism," Bondi stated.
On March 19, 2025, Twitter users circulated footage of two individuals keying a Tesla in California, adding to the growing evidence of hostility toward the automaker and its CEO. Just a day before, a man was arrested in San Jose after he was caught on camera committing similar acts. The increase in vandalism raises questions about the brand's future appeal, with Musk's political stances seriously alienating well-off, environmentally conscious consumers who once viewed owning a Tesla as a symbol of social prestige.
In light of this unrest, the backlash against Musk and the company has catalyzed a movement, with protests organized by groups like Tesla Takedown. The planned protests on March 29 aim to cover up to 500 locations globally. These actions signal a clear intent by activists and ordinary citizens to shift public sentiment regarding Tesla.
While some Tesla owners express support for the brand, others are feeling pressured amid rising social hostilities. Avi Benhamo, a Tesla owner, became a target for political vandalism himself when someone scrawled “Elon Musk = Swastika” on his vehicle. He expressed frustration, stating, “I can appreciate the car, but why do people have to paint their agendas on it?”
Musk's efforts to stabilize Tesla are faced with dwindling sales and an unfriendly market. The company is expected to release more affordable electric vehicles in 2025 as it seeks to revitalize interest in its products. However, analysts warn that any shift in market perception, as evidenced by the current vandalism, could impact long-term sales and drive prospective customers toward competitors.
This escalating divide is also highlighted by an increase in conservative support for Tesla. Business figures such as Howard Lutnick have encouraged buying Tesla shares, suggesting they are a bargain in these turbulent times. Conversely, analysts from Oppenheimer & Co. caution that while there may be potential for cultivating a conservative customer base, the infrastructure may not adequately support such a demographic.
As Musk remains under scrutiny, the evaluation of Tesla's stock continues to fluctuate dramatically. Ives, an esteemed analyst with Wedbush Securities, characterized the current crises confronting Musk and Tesla as a “Tornado of Crisis,” calling for Musk to refocus on Tesla rather than the politics that may harm the brand. Musk's current stock value, which is already significantly low, raises concerns for the future of not just Tesla but his broader business empire, intertwined within the public's fluctuating perceptions of his leadership.
Ultimately, as public opinion towards Musk continues to shape Tesla’s fate, the potential for catastrophic financial loss looms larger. If the ongoing upheaval persists, both Musk’s financial standing and Tesla's market stability could experience unprecedented declines, setting off a chain reaction of events that could jeopardize their future in the electric vehicle industry.
