Tesla is living one of her most challenging moments. Sales fall, actions fluctuate and their most emblematic figure, Elon Musk, has promised to reduce its involvement in Trump’s government to focus again on the company. However, the problems facing the electric car manufacturer go far beyond the political agenda of its CEO.
Historical fall in sales and commercial tensions
During the recent results conference, Elon Musk announced that it will reduce its participation in the Government Efficiency Department (Doge), where it has been linked to the Trump administration. This departure comes just after Tesla reported quarterly results well below expectations.
The company registered a 9 % drop in total income, with a decrease of 20 % in the automotive area and a 39 % decrease in tight income. Even more worrying, the net profit fell 71 % compared to the previous year. All this in a context of commercial war and new tariffs imposed by the US, which although they do not directly affect Tesla as other manufacturers, do impact their supply chains.
Musk defends himself, but investors demand results
Musk did not directly hold Trump for commercial uncertainty, but was critical of tariffs and said he will continue to advocate more open policies. However, investors are increasingly concerned about their double role.
The protests and vandalism against Tesla in the US and Europe have been increasing, especially after Musk’s support for extreme right parties in the old continent. He, on the other hand, justified the reactions by stating that Doge is eliminating “waste and fraud.”
Despite this, he assured that his work in Doge is almost finished and that he can focus on Tesla again, which caused the actions to rise 4 % in operations after closing. Even so, Musk downplayed the brand and blamed macroeconomic factors.
The promised future and imminent challenges
Musk tried to recover market confidence promising advances in autonomous driving technologies and humanoid robots, ensuring that Tesla will live a period of “sustainable abundance for all.”
The company also reaffirmed its intention to launch cheaper models in the middle of the year and a “robotaxi” without steering wheel or pedals in 2026. However, these projects still lack confirmed production, and competition – especially from China – intensifies.
The Chinese manufacturer Byd has surpassed Tesla in sales of electric vehicles in several recent quarters. Although Tesla still leads in annual sales, it is at risk of losing that position in 2025. China, the world’s largest electric vehicle market, was not mentioned in detail in the profit report.
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