Silke Mayr Ben Kilbey, a staunch supporter of electric vehicles (EVs), has owned his Tesla Model Y for three years, describing it as an “absolute dream.” However, Kilbey, who runs a communications firm focused on sustainable businesses in the UK, has made the difficult decision to part ways with his beloved vehicle. His reason: disapproval of Tesla CEO Elon Musk’s recent actions, particularly his controversial dismissal of US government employees.
“I dislike polarization and actions that lack kindness,” Kilbey says. “There are ways to manage decisions without isolating or belittling people. I do not support humiliation.”
Kilbey’s decision reflects a growing wave of opposition against Musk. His political involvement, which intensified following his leadership of the Department for Government Efficiency (DOGE) and his aggressive stance on federal spending cuts, has alienated a portion of Tesla’s customer base.
Musk’s Political Controversies Stir International Protests
Musk’s political influence has extended beyond the US. He recently appeared at a rally for the far-right Alternative für Deutschland party in Germany and launched online attacks on British politicians, including Prime Minister Keir Starmer. For many, this behavior has crossed a line, sparking protests outside Tesla dealerships in the US, Canada, the UK, Germany, and Portugal. While most of the demonstrations have remained peaceful, incidents of vandalism have surfaced, with some showrooms, charging stations, and even vehicles being damaged. In France and Germany, several Tesla cars were set on fire in separate attacks.
The Tesla Cybertruck, often seen as a symbol of Musk’s vision, has become a focal point for anti-Musk sentiment. Social media posts have shown the truck covered in graffiti, scattered with litter, or repurposed as skateboard ramps, further symbolizing the disconnect between Musk’s public persona and his brand’s image.
Tesla’s Struggles Amid Political Backlash
The mounting protests and negative attention are not without consequences for Tesla’s business. While Musk continues to downplay the impact of his political views, many critics argue that his controversial actions are driving away potential customers. Despite Tesla’s early success in revolutionizing the EV market, the company now faces declining sales and rising competition.
Tesla, once a trailblazer in the electric car industry, has seen its global sales drop for the first time in over a decade. Last year, the Model Y was the best-selling car worldwide, but Tesla’s overall sales slipped from 1.81 million to 1.79 million vehicles. This decline, although slight, signals potential trouble for a company that has long relied on rapid growth to maintain its market leadership.
In Europe, Tesla’s performance has been particularly disappointing. New car registrations fell by 45% in January compared to 2024, and the trend continued in February across key markets. The UK, however, remains an outlier, with a 21% increase in Tesla registrations. In China, where Tesla manufactures vehicles for both domestic and international markets, shipments dropped by nearly 50%.
UBS analyst Joseph Spak has predicted a 5% decline in Tesla’s global sales for 2025, contradicting earlier expectations of 10% growth. This forecast, coupled with the company’s worsening performance, has caused Tesla’s stock price to plummet by 15%, adding to the 40% drop since the beginning of the year.
Musk’s Political Activities Harm Tesla’s Reputation
Tesla’s reputation has been further damaged by Musk’s political activities. According to brand monitoring firm Morning Consult Intelligence, Tesla’s image has suffered significantly in the European Union and Canada. In the US, opinions remain divided, with some consumers supporting Musk’s stance on government spending cuts. However, the firm warns that high-income consumers—the demographic most likely to purchase EVs—now rank Tesla lower compared to a year ago.
Aging Models and Rising Competition
Tesla’s problems extend beyond its CEO’s political views. The company’s vehicle lineup, once at the forefront of innovation, now faces stiff competition from both traditional automakers and newer entrants to the EV market. The Model S and Model X, which were released in 2012 and 2015 respectively, have seen little change, while the Model 3 and Model Y, despite their popularity, face increasing competition from newer models.
“Their lineup lacks fresh innovation,” says Stephanie Valdez Streaty of Cox Automotive. “Apart from the Cybertruck, which is niche, they haven’t introduced anything groundbreaking recently. The Model Y refresh was minor, and competitors are rapidly advancing.”
Professor Peter Wells of Cardiff University echoes this concern, noting that Tesla has not demonstrated the level of innovation expected from a company of its size and stature.
The competitive landscape is becoming more challenging for Tesla, with traditional automakers like Hyundai and Kia gaining traction in the EV space. Additionally, Chinese EV brands such as BYD, Xpeng, and Nio are expanding rapidly, offering high-performance vehicles at competitive prices.
“China provides huge incentives for EV development,” says Valdez Streaty. “BYD, in particular, is growing globally. This is a major threat, not just for Tesla, but for all automakers.”
In March, BYD unveiled an ultra-fast charging system that delivers 250 miles of range in just five minutes, surpassing Tesla’s Supercharger technology.
The Future of Tesla Under Musk’s Leadership
Despite mounting challenges, Musk remains focused on autonomous driving and has promised that Tesla’s robotaxi service will launch in Texas by June. However, skepticism remains high, as Musk has made similar claims for years without delivering results.
“Every year, Musk assures us self-driving Teslas are just around the corner,” says Jay Nagley of Redspy. “Yet, they never seem to arrive.”
Tesla, now facing increased competition and strategic uncertainty, finds itself in need of strong leadership. Musk, who is also managing SpaceX, the AI firm xAI, and his social network X, appears increasingly distracted.
“It’s difficult to determine how involved Musk is in Tesla’s daily operations,” says Professor Wells. “If he remains responsible for critical decisions, they must be the right ones. A company of Tesla’s scale requires a fully committed leader with deep automotive expertise.”
While Musk’s position at Tesla remains secure, with him owning 13% of the company and holding significant influence over its future, some analysts believe that a leadership change could benefit the company. Matthias Schmidt of Schmidt Automotive Research suggests, “A new CEO would be the best move for Tesla. It would remove Musk’s controversies from the equation and ensure the company has a dedicated leader.”