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Tesla’s Nightmare: Sales Collapse, Stock Crashes, and Musk’s Trump Gamble Backfires

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Posted: 16th March 2025
Lawyer Monthly
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Tesla’s Nightmare: Sales Collapse, Stock Crashes, and Musk’s Trump Gamble Backfires.

Tesla is in freefall—and Elon Musk’s political ambitions might be dragging the company to its doom. Once the crown jewel of the electric vehicle (EV) industry, Tesla is now hemorrhaging sales worldwide.

With global competition surging and progressives abandoning the brand, even Donald Trump’s desperate rescue mission may not be enough to save it. Tesla’s stock has tanked by 36% in 2025, marking its worst year in half a decade. Meanwhile, rival automakers like BYD are circling like vultures, ready to feast on Tesla’s market share.

Tesla’s Sales Are Plummeting at Record Speed

The numbers don’t lie: Tesla is in crisis. In Europe, Tesla’s sales crashed 50% in January, with Germany suffering a catastrophic 76% drop year-over-year in February. Meanwhile, in China—Tesla’s second-largest market—shipments plunged 49%, their lowest since July 2022. Even in the U.S., where Trump is championing Musk’s cars, Tesla’s January sales fell 11%, while rival EV brands surged ahead. Boycotts in Canada, Portugal, and the U.K. are dealing even more damage.

The problem? Musk has alienated the very customers who made Tesla a success. Once a symbol of progressive innovation, Tesla is now tainted by Musk’s controversial politics and deep ties to Trump. Many former buyers want nothing to do with a company now seen as a symbol of the far-right movement.

elon musk heil salute far right

Elon Musk

Musk’s Political Gambit Backfires

Musk’s new role as the head of Trump’s Department of Government Efficiency (DOGE) has only deepened Tesla’s troubles. His outspoken political rants on X (formerly Twitter) have made him a polarizing figure—and Tesla is paying the price. Reports of vandalism against Tesla cars are rising in U.S. cities, while European consumers are turning away in droves.

Trump’s public endorsement of Tesla—including a promise to buy one himself—has done little to reverse the company’s spiraling decline. While Trump’s base cheers Musk on, the reality is clear: conservatives aren’t buying EVs in large enough numbers to offset Tesla’s losses.

boycott tesla

Boycott tesla protests

China’s BYD Is Crushing Tesla’s Market Share

As Tesla bleeds customers, China’s EV giant BYD is seizing control. BYD has already overtaken Tesla as the world’s top EV producer, flooding the market with cheaper, high-tech alternatives. Tesla’s latest move—a low-cost Model Y designed for China—feels like a desperate attempt to claw back its vanishing market share.

Adding to Tesla’s woes, Trump’s aggressive trade policies are stoking tensions with China, putting the company at further risk. Tariffs and retaliatory measures could make Tesla vehicles even less competitive, worsening its already dire situation.

Tesla’s Stock Meltdown: Investors in Panic Mode

Tesla’s stock collapse is sending shockwaves through Wall Street. Since the start of 2025, shares have plummeted 36%, wiping out billions in market value. On March 11 alone, Tesla’s stock nosedived 15%, closing at a devastating $215—the lowest since Trump’s election victory.

Financial analysts are sounding the alarm. JPMorgan’s latest report warns that Tesla’s brand has taken an “unprecedented” hit, with no clear path to recovery. Meanwhile, Musk’s obsession with the Cybertruck and AI ventures is distracting from Tesla’s crumbling core business. His decision to kill the affordable $25,000 Tesla in favor of the niche Cybertruck has baffled industry experts.

Tesla charging station, California, USA.

Tesla Charging Station

Is This the Beginning of the End for Tesla?

Tesla’s future has never looked more uncertain. With sales collapsing, stock tanking, and customers fleeing, the company is at a make-or-break moment. Musk’s political entanglements may have doomed his own brand, and his once-loyal customers may never return.

If Tesla can’t reverse this downward spiral, it may soon lose its place as the EV industry leader—or worse, face total irrelevance in the market it once dominated. While Musk remains the world’s richest person, Tesla is now fighting for its survival.

Will Tesla make a miraculous comeback, or is this the beginning of the end? Let us know your thoughts in the comments below. 👇

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