The Fallout from Elon Musk’s Controversies and Tesla’s Struggles

Tesla, once a symbol of innovation and a favorite of electric vehicle enthusiasts worldwide, has been facing significant turmoil. What was once a golden era of rapid growth and groundbreaking technological advancements is now overshadowed by plummeting stock prices, product issues, and a growing wave of disillusionment among its loyal customer base. But what exactly is behind the turning tide, and could Tesla’s future be in jeopardy?

From Visionary to Villain: Elon Musk’s Fall from Grace

For many, Tesla was more than just a car company—it was a movement. Elon Musk, admired as a visionary entrepreneur and likened to Tony Stark, inspired millions with his ambitious goals of revolutionizing the auto industry and addressing the planet’s biggest challenges, like climate change. Tesla became synonymous with progress, sustainability, and high-tech innovation. But recent months have been filled with controversy, with Musk’s behavior, both online and off, pushing many long-time supporters to reconsider their loyalty.

Once revered for his bold ideas, Musk’s outspoken presence on social media, his political involvement, and controversial public statements have alienated many Tesla fans. For some, Musk’s public behavior has shifted from eccentric genius to erratic and untrustworthy figure. Many of his biggest fans have now distanced themselves from the company, with some even selling their shares and looking to rival electric vehicle manufacturers.

The Numbers Don’t Lie: Tesla’s Struggles in 2025

Tesla’s financial performance has also been troubling. In the first quarter of 2025, the company saw deliveries fall by 13%, while automotive revenue dropped by 20%. Profits plunged by a staggering 71%, and used Tesla vehicles are losing value faster than any other brand. Many long-time owners are finding themselves “upside down” on their loans, with vehicles that are now worth far less than what they paid for them. To make matters worse, Tesla’s Full Self-Driving (FSD) feature, which many owners pre-paid for, has faced numerous delays and failed to meet expectations, further souring customers’ experiences.

Tesla’s brand has suffered as well. Once ranked among the top ten global brands in 2023, Tesla’s standing has fallen significantly in 2024 and 2025. The company’s problems are twofold: increased competition from other automakers in terms of product quality, pricing, and innovation, and the negative impact of Musk’s increasingly controversial public behavior.

Public Perception of Musk and Tesla

Public opinion on Tesla and Elon Musk is shifting dramatically. A recent CNBC survey revealed that half of Americans now hold a negative view of Tesla and Musk, with only 27% expressing positive sentiment. Among Democrats, Musk’s net approval rating is an astonishing -82, while he enjoys a more favorable 56% approval rating among Republicans. This political divide has further complicated Tesla’s image, especially since electric vehicles have traditionally been more popular among left-leaning consumers.

Tesla’s reputation is also being damaged by ongoing safety concerns, particularly with its Full Self-Driving technology. The National Highway Traffic Safety Administration (NHTSA) has opened multiple investigations into crashes involving Tesla’s driver assistance software, and Musk’s repeated controversies—such as defamation lawsuits, SEC investigations, and his erratic behavior—are taking a toll on customer loyalty.

The Political Factor: Musk’s Involvement with Trump and Political Backlash

Musk’s increased political involvement, particularly with the Trump administration, has raised eyebrows among Tesla enthusiasts. He has donated over a quarter of a billion dollars to various Republican causes leading up to the 2024 election and served as an advisor to President Trump. For many Tesla customers, Musk’s right-wing stance is the final straw. They feel that the company has become too politicized and is drifting away from its original purpose of promoting sustainability and clean energy.

As Musk continues to divide his focus between his ventures, including his purchase of Twitter and his role in the Trump administration, Tesla is facing an uncertain future. Investors are questioning whether Musk’s involvement in so many different projects is undermining the company’s ability to thrive.

Competition and the Decline of Tesla’s Leadership

Tesla’s once-unassailable lead in the electric vehicle market is beginning to erode. Other automakers, especially those from China, have ramped up their electric vehicle offerings, providing consumers with more choices and better quality at competitive prices. Tesla, meanwhile, is seen as falling behind in key areas like autonomous driving technology and robotics, despite once being a pioneer in both fields.

The company’s stock price has been volatile, and many former fans who once believed in the brand are now turning to other manufacturers. Tesla’s future in the autonomous vehicle space is uncertain, and while Musk’s plan to focus more on government work may offer some relief, it raises the question: Is he still the right leader for Tesla?

Can Musk Win Back His Supporters?

Despite the mounting issues, it is clear that many Tesla owners and investors still hold out hope that Musk can steer the company back on course. However, it won’t be easy. Restoring trust in Tesla will require more than just a change in leadership style—it will require a return to the fundamentals that once made the company great: innovation, sustainability, and a focus on delivering high-quality products.

Musk may need to take a step back and reevaluate his approach, especially if he wants to rebuild relationships with Tesla’s former loyal customers. It remains to be seen whether the company can recover from its current slump, but one thing is certain: Tesla’s future is no longer as secure as it once seemed.

Conclusion: A Turning Point for Tesla

Tesla is at a crossroads. The company’s future success depends on whether Musk can refocus his efforts on the business and restore the trust that has been eroded in recent years. With rising competition, financial setbacks, and a tarnished public image, it will be a difficult road ahead. However, if Musk can return to the roots of Tesla’s mission and recapture the hearts of his customers, there is still hope that the electric vehicle revolution he started could continue.

But for now, the question remains: Are Tesla’s biggest fans done with Elon Musk? Only time will tell if Musk can win back their loyalty—or if his controversial actions have permanently altered the company’s fate.