“I bought it before Elon went crazy.” More and more Tesla owners in the United States are displaying this sticker on their vehicles, reflecting growing discontent with the company’s CEO, Elon Musk. Musk’s recent actions have sparked controversy, with unpopular measures, harassment, and threats that lack legal justification. Last Thursday, he appeared at a conservative conference wielding a chainsaw; on Saturday, he threatened to dismiss more than two million federal employees if they ignored his directives; and on Tuesday, he publicly challenged the judiciary.

Investors are increasingly concerned about Musk’s authoritarian and unpopular drift. Demonstrations have erupted outside Tesla dealerships, with some protesters displaying Nazi and fascist symbols. Sales in Europe have plummeted, and Tesla’s stock has fallen more than 8% on the stock market, marking the company’s lowest valuation in several months.

Tesla’s sales in Europe collapsed by 45% last month, according to data released by the European Association of Automobile Manufacturers. The company sold only 9,945 cars in January, compared to 18,161 a year ago. The decline was even more pronounced in the European Union, with a 50.3% drop to 7,517 units. Rival manufacturers, however, experienced an increase in demand. Sales of electric vehicles in the sector as a whole rose by 37%, and car manufacturers reported significant profits in Germany and the United Kingdom.

Tesla’s sales in key European markets have also been severely impacted. In Germany, the company sold only 1,277 cars in January, its lowest monthly total since July 2021. Sales in France plummeted by 63%, marking the worst result since August 2022. In the United Kingdom, Tesla registered fewer vehicles than China’s BYD for the first time, suffering an 8% decline in an electric vehicle market that grew by 42%. In Spain, registrations collapsed by 75.5%, reaching only 268 units.

Surveys conducted by YouGov in Germany and the United Kingdom in mid-January revealed that Musk is widely seen unfavorably. 71% of respondents had a negative opinion about the world’s richest man, while less than 20% viewed him positively. Musk’s interference in the politics of these countries has been poorly received. He organized a live debate with the leader of Germany’s Alternative Party for Germany (AFD), Alice Weidel, on his social network X, and in the United Kingdom, he attacked Prime Minister Keir Starmer, disseminating misinformation and calling for his imprisonment. In Spain, Musk has shown his support for the far-right party Vox.

The collapse of Tesla’s sales in Europe is due to a combination of factors, including inventory and transition problems between models, as well as tough competition from other manufacturers, particularly China’s BYD, which offers cheaper electric cars.

The backlash against Musk and Tesla extends across the United States. Protests outside Tesla stores are occurring throughout the country, and there are calls for a boycott. Many Tesla customers are environmentally conscious and concerned about climate change and carbon dioxide emissions. Now, they see Musk as a key figure in a government that supports fossil fuels and the elimination of restrictions on car emissions.

Musk’s prominence in social spending cuts and layoffs of federal employees has further alienated the public. Musk also spreads misinformation incessantly through his social network, X. The political pollution of the company has become an increasingly evident risk.

Since last Thursday, when Musk appeared with a chainsaw at a conservative political conference, Tesla’s stock has dropped by 16%. In four sessions, the company has lost $186 billion in market value, leaving its capitalization at $974 billion, below $1 trillion for the first time in several months. The greatest fall occurred this Tuesday, with an 8.4% drop.

Tesla’s stock soared after Donald Trump’s victory in the 2024 presidential election. Musk was the main financier of Trump’s campaign and has made it clear from the beginning that he was willing to benefit from his proximity to the president, for example, to push for more favorable regulations for autonomous cars. With his team from the Government Efficiency Department (Doge), he has begun to dismiss employees from regulatory agencies investigating Tesla.

Tesla’s shares marked a high of $488 in mid-December. Since then, the price has fallen by 38%, partly due to investor fears that Musk’s unpopularity will harm the company more than his proximity to the president benefits it. With their fall on Tuesday, the shares returned to the level they were at before the presidential elections of November 5. They closed this Thursday’s session at $302.80 per share, the lowest since November 7.

In a single day, Elon Musk’s fortune has been reduced by $22.2 billion. So far this year, it has fallen by $74.5 billion. Despite this, according to the Bloomberg Billionaires Index, Musk retains the title of the world’s richest man by a wide margin. His wealth is estimated at $358 billion, compared to $233 billion for Jeff Bezos, founder of Amazon, and $232 billion for Mark Zuckerberg, founder of Meta. Musk’s fortune reached $486 billion in mid-December.

Elon Musk continues to sell investors a future of wealth linked to the development of humanoids and autonomous cars. In his last conference with analysts, at the end of January, he said that he saw “a way” not only for Tesla to be the most valuable company in the world, but to exceed the next five largest companies combined. “It is a difficult, but attainable path. And that is largely due to autonomous vehicles and autonomous humanoid robots,” he said.

“We laid the foundations for this in 2024. We will continue to lay the foundations for it in 2025. In fact, rather than lay the bases, we begin to build the structure. We are building the manufacturing lines. And I would like to prepare for what I think will be an epic 2026 and a 2027 and a ridiculously good 2028. That is my prediction,” Musk tried to convince analysts and investors.

Counterarguments and Criticisms

Critics argue that Musk’s controversial actions and statements are a distraction from Tesla’s core business. They believe that focusing on innovation and customer satisfaction, rather than political involvement, would be more beneficial for the company. However, Musk’s supporters point to his visionary leadership and the company’s groundbreaking technologies as reasons for continued investment.

Recent Developments

Despite the backlash, Tesla continues to innovate. The company recently announced plans to expand its manufacturing facilities in the United States, aiming to increase production capacity and reduce costs. This move is seen as a strategic response to the challenges posed by competitors and the shifting market dynamics.

Practical Applications

For consumers, the current situation presents an opportunity to reevaluate their purchasing decisions. Those concerned about climate change and environmental sustainability may choose to support companies with a stronger commitment to these values. For investors, the volatility in Tesla’s stock offers both risks and opportunities. Diversifying portfolios and staying informed about industry trends can help mitigate potential losses.

Conclusion

Elon Musk’s controversial actions and the resulting backlash have significantly impacted Tesla’s stock and public perception. While the company faces challenges, it continues to innovate and expand. The future of Tesla will depend on its ability to navigate these challenges and maintain its leadership in the electric vehicle market.