Elon Musk makes an urgent decision with Tesla: nobody expected it

Elon Musk is still in the focus of informative news. And now, for a weight of weight. And it is that the wealthy businessman has just announced a new turn in his professional life.

Specifically, the tycoon has confirmed his decision to focus on Tesla again. All this after announcing that he will leave his position at the head of the controversial Doge next month. According to his statements, he will only dedicate one or two days a week to that function, promising to reinvest his time in the company’s direction.

However, the key question that many are asked is whether this movement is too late to reverse the damage already caused to the brand. Since Elon Musk assumed a more active political role and aligned with Donald Trump, Tesla has seen his reputation deteriorate. The consequences have not been expected: protests in front of their exhibition rooms, acts of vandalism and the greatest fall in quarterly sales in the history of the company.

A collapse of Tesla’s profits

During the first quarter of 2025, Tesla’s net gains collapsed by 71%, which generated great concern among investors. Although Tesla’s actions rose slightly after Elon Musk’s announcement, some experts consider that the damage is already done. Dan Iives, Wedbush Securities analyst, estimates that demand could permanently reduce 10% due to businessman’s political exhibition.

“The damage to the brand caused by Elon Musk in the White House and Doge will not disappear with this decision,” he warned. For his part, the protagonist has denied that his political positions have harmed Tesla. Instead, he held “paid protesters” and alluded to macroeconomic factors to justify the fall of sales.

However, other car manufacturers, especially those that produce electric vehicles, have reported growth in the same period. Vaibhav Taneja, financial director of Tesla, acknowledged that vandalism and hostility towards the brand have had a real impact. On the other hand, more hard critics, such as Gordon Johnson of Glj Research, say that the damage caused by Elon Musk is “100 % irreversible.”

Kelly O’Keefe, founder of Brand Federation, was even more forceful: he described the situation as a “brand homicide.” According to her, Tesla went from being a symbol of concern for climate change to a brand that generates rejection. With Tesla in full identity crisis, Elon Musk’s return may not be enough to recover lost trust.