This has been our family car for three years, and it has been an absolute dream,” says Ben Kilbey, proudly showcasing his pristine Tesla Model Y. However, despite his passion for electric vehicles, he has decided to sell his car due to growing concerns about Tesla’s CEO, Elon Musk.
Kilbey, who runs a communications firm promoting sustainable businesses in the UK, says Musk’s controversial actions, particularly his handling of US government employee terminations, have influenced his decision.
“I am against polarization and harsh actions,” he explains. “There are ways to handle things that do not exclude or demean people. I cannot support belittlement.”
Kilbey represents a growing number of Tesla owners distancing themselves from Musk. The backlash intensified after Musk assumed leadership of the Department for Government Efficiency (DOGE), a new federal agency focused on cutting government spending. His controversial political engagements, including support for the far-right Alternative für Deutschland party and attacks on British politicians, have fueled criticism.
Protests against Musk and Tesla have erupted in the US, Canada, the UK, Germany, and Portugal. While many remain peaceful, some have led to vandalism, including defaced charging stations, damaged showroom windows, and even Tesla vehicles being set ablaze in France and Germany.
In the US, Tesla’s Cybertruck has become a symbol of controversy. Videos circulating on social media show Cybertrucks covered in graffiti, filled with garbage, or used as makeshift skateboard ramps.
Former US President Donald Trump voiced support for Tesla, allowing the company to showcase its vehicles outside the White House and vowing to purchase one. He condemned the vandalism as “domestic terrorism.”
Musk also addressed the backlash, stating in an interview, “This level of violence is insane and deeply wrong. Tesla simply builds electric cars and does not deserve these attacks.”
Challenges Beyond Musk’s Reputation
The impact of Musk’s controversies on Tesla’s business remains unclear, but analysts suggest his increasing political involvement is tarnishing the brand and alienating potential EV buyers.
Two decades ago, Tesla was a small Silicon Valley startup with ambitious plans to revolutionize the auto industry. Today, it leads global EV sales and has pushed traditional automakers toward electrification. Musk played a pivotal role in Tesla’s success since joining as chairman in 2004 and later becoming CEO in 2008.
“Tesla was the pioneer,” says Stephanie Valdez Streaty, director of industry insights at Cox Automotive. “They made EVs mainstream and pushed other automakers to invest in electric technology.”
Tesla’s rise accelerated with the launch of the Model S in 2012, demonstrating that EVs could be stylish and high-performing. The company expanded into autonomous driving technology, energy storage, and robotics with its humanoid robot, Optimus.
However, as Musk’s public persona dominates headlines, Tesla faces significant challenges, from declining sales to intensifying competition.
Tesla’s Market Struggles and Rising Competition
Despite the Model Y being the world’s best-selling car last year, Tesla’s overall sales declined for the first time in over a decade, dropping from 1.81 million to 1.79 million vehicles. The decline was small but significant for a company reliant on rapid growth. Annual profits also fell.
Early 2025 has been particularly rough for Tesla in Europe. In January, Tesla registrations dropped by 45% compared to the previous year. February saw continued declines across major European markets, though UK sales grew by 21%. Meanwhile, exports of China-manufactured Teslas plummeted by nearly 50%.
Joseph Spak, a Wall Street analyst at UBS, recently forecasted a 5% decline in Tesla’s global sales for 2025, reversing previous growth projections of 10%. Following this, Tesla’s stock price plunged 15% in a single day, extending an overall decline of 40% since the start of the year.
Market research by Morning Consult Intelligence suggests Musk’s actions have damaged Tesla’s reputation, particularly in Europe and Canada. However, the impact in China remains minimal, as the country continues to be one of Tesla’s largest markets.
In the US, public opinion is divided. While some support Musk’s budget-cutting initiatives at DOGE, data suggests he is alienating high-income buyers most inclined to purchase EVs. Among wealthy consumers planning to buy an electric vehicle, Tesla now ranks lower than a year ago.
Outdated Models and Intensifying Competition
Tesla’s product lineup, once groundbreaking, now appears stagnant. The Model S (2012) and Model X (2015) have seen only minor updates. Even the Model 3 and Model Y, which once set industry benchmarks, now face stiff competition from rivals offering fresher designs and better features.
“If you look at their offerings, they haven’t introduced anything new apart from the Cybertruck, which remains a niche product,” says Valdez Streaty. “The Model Y received a minor refresh, but it wasn’t a major breakthrough. Meanwhile, competitors have significantly stepped up.”
Prof. Peter Wells of Cardiff University echoes this sentiment: “Tesla has not demonstrated the level of product innovation expected from Musk. This is a key issue.”
Legacy automakers like Kia and Hyundai have invested heavily in EVs, earning praise for quality and affordability. Meanwhile, Chinese brands such as BYD, Xpeng, and Nio are expanding aggressively. BYD, in particular, is gaining ground by offering high-performance EVs at lower prices.
“China provides strong incentives for EV manufacturers,” Valdez Streaty explains. “Companies like BYD continue expanding not only within China but internationally, posing a major threat to Tesla.”
BYD recently introduced an ultra-fast charging system capable of delivering 250 miles of range in five minutes—far quicker than Tesla’s Supercharger network.
Leadership Challenges and Tesla’s Future
Musk appears increasingly focused on autonomous vehicles, claiming Tesla’s robotaxi service will launch in Texas by June. However, industry experts remain skeptical, citing years of unfulfilled promises regarding self-driving technology.
“Every year, Musk announces that autonomous Teslas are just around the corner, yet they never seem to arrive,” says Jay Nagley of automotive consultancy Redspy.
Musk also manages the social media platform X, artificial intelligence firm xAI, and SpaceX, which recently faced setbacks with its Starship rocket program.
Asked how he balances these responsibilities, Musk admitted in a recent interview: “With great difficulty.”
“It’s unclear how much hands-on management Musk currently provides at Tesla,” says Prof. Wells. “If he’s still making key decisions on product strategy and factory locations, those choices must be right. A CEO dedicated solely to Tesla could be vital.”
Despite mounting challenges, Musk remains Tesla’s largest shareholder, holding a 13% stake valued at over $95 billion. Major investors like Vanguard and BlackRock have yet to demand leadership changes. However, some analysts argue that Tesla would benefit from a new CEO.
“A new CEO would undoubtedly be the best move for Tesla,” says Matthias Schmidt of Schmidt Automotive Research. “It would mitigate the negative impact of Musk’s controversies and provide focused leadership.”
“Tesla needs a major strategic shift,” adds Prof. Wells. “The company requires an industry expert to rationalize operations and steer it toward long-term success.”