Elon Musk can keep his “false guise of efficiency” all he wants. However, there is no doubt that Tesla is facing a fallout, perhaps the biggest one in history. And who is to be blamed for all this? Yes, Musk himself.
Now, the question remains: is Tesla in its “Flop Era?” Or will there be a comeback? At least from the current sales report, the latter seems quite fictional.
Tesla Sales Report: A Nightmare
Tesla sales are plunging and stocks are sliding like never before. Tesla reported on Wednesday that it delivered 336,681 cars in the quarter. That’s 50,000 fewer vehicles compared to the first three months of last year. Moreover, Tesla sold 9,945 vehicles in Europe this January, which is a massive 45% decline compared to its sales in January 2024. All this despite the EV market’s growth in Europe by 37%. This means Tesla sales in Europe have effectively fallen more than 60% despite the growing market.
It gets worse for Tesla — Tesla was even outsold by a Chinese competitor named BYD, that too in Europe. This is probably the first time such a pivotal shift has happened and a Chinese EV brand has outsold Tesla in the west. Even racism couldn’t prevent Tesla’s downfall!
There have also been instances of vandalism against Tesla facilities, including its charging stations, as well as some cars. All these incidents may have discouraged some potential Tesla buyers from going ahead with their purchases.
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News of these horrific sales wiped more than $100 billion off Tesla’s value practically overnight, resulting in Tesla stock being down 36% from its peak in December 2024. And the worst news for Musk is that it could go even lower.
Everything that was once Tesla’s strength is now the very reason for its downfall.
Why are Tesla’s Sales Declining?
Tesla’s decline is stunning for a company that until recently was reporting year-over-year sales growth of between 20% and 100% virtually every quarter. The main reason for this downfall is: Elon Musk. “This quarter was an example of the damage Musk is causing Tesla. This continues to be a moment of truth for Musk to navigate this brand tornado crisis and get onto the other side of this dark chapter for Tesla” said an insider.
Ever since his controversial right-wing actions and him becoming the right man for Trump, Musk is facing massive backlash. Being such a far right fascist and Nazi is finally costing Elon Musk and most importantly it’s sinking the automotive giant that Tesla was.
Elon Musk delivered not just one, but two, clear Nazi salutes at Trump’s inauguration and made an appearance at an AfD campaign rally (a German far-right political party with many ties to white supremacy and neo-Nazis) in which he stated they should “move beyond” the past guilt of their country. Tesla has also faced protests outside its showrooms from those opposed to the actions of Musk in one of his other roles as the head of the Department of Government Efficiency, and the policies of Donald Trump’s presidential administration.
The Fallout Seems Near
The house of cards is falling down, and the hollow promises that boosted this automotive giant are now withering. Honestly, the only way Tesla can continue like this is if Musk manipulates one of the largest and most powerful governments in the world to pour money into the company and remove all of the safety regulations protecting the public. But that will only hold Tesla more accountable in the long run.
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