Ben Kirby, showcasing his gleaming, pearl-white Tesla Model Y, said, "This car has been our family's car for three years, and it's simply a dream car." He added that the vehicle has provided his family with numerous memorable road trips and reliable transportation.
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03-20, 2025Kirby is a staunch electric vehicle advocate who runs a communications company in the UK promoting sustainable businesses. However, he now says the Model Y has to go—because he strongly objects to the behavior of Tesla CEO Elon Musk, particularly his handling of the dismissal of U.S. government employees. This decision reflects his personal values and his belief in holding corporate leaders accountable.
"I don't like polarization, and I don't like doing things unkindly," he said. "There's always a way to avoid excluding or belittling others. I don't like belittling." His statement highlights a growing concern about the impact of divisive rhetoric and the importance of respectful communication.
Kirby is just one member of a growing wave of resistance against the Tesla boss. This wave seems to have intensified in recent weeks, ever since Musk was appointed to head the controversial Department of Government Efficiency (DOGE), tasked with making sweeping cuts to federal spending. The controversy surrounding his appointment has fueled public discontent.
Musk has also interfered in politics abroad, delivering a video address at a rally for the far-right Alternative for Germany party on the eve of the German parliamentary elections, and attacking British politicians, including UK Prime Minister Keir Starmer, online. These actions have drawn criticism for their potential to influence foreign elections and undermine democratic processes.
For some who don't share his views, it has all become too much. The increasing polarization and the perceived abuse of power have led to a growing sense of disillusionment.
Dozens of protests have already taken place outside Tesla dealerships, not only in the US, but also in Canada, the UK, Germany and Portugal. These protests reflect the widespread dissatisfaction with Musk's actions and their impact on the Tesla brand.
While most protests have been peaceful, there have been incidents of vandalism against showrooms, charging stations and vehicles. In separate incidents in France and Germany, several cars have been set on fire. These acts of violence highlight the intensity of the emotions surrounding the controversy.
In the US, the Tesla Cybertruck, with its angular, metallic body, seems to have become a particular target for anti-Musk sentiment. Some social media videos show vehicles daubed with Nazi symbols, covered in garbage, or used as skateboarding ramps. The Cybertruck's unique design has made it a symbol of Musk's controversial leadership.
US President Donald Trump quickly expressed his support for Tesla, allowing the company to display its vehicles outside the White House and promising to buy one. He said the violence against American showrooms should be treated as "domestic terrorism." His support underscores the political divisions surrounding Tesla and its CEO.
Musk has also responded in no uncertain terms. "This level of violence is insane, and just completely wrong," he said in a recent Fox News interview. "Tesla just makes electric cars, and hasn't done anything that should merit these evil attacks." He emphasized that the company's mission is to promote sustainable transportation, not to engage in political controversy.
It's hard to quantify what impact all of this is having on Tesla's business—and how much Musk's views and involvement with the Trump administration are affecting the brand, and alienating some traditional EV buyers. The intangible nature of brand perception makes it challenging to assess the true extent of the damage.
If so, can Tesla really build on its past successes, with Musk continuing at the helm? The company's future success depends on its ability to navigate the current challenges and maintain its appeal to a broad range of consumers.
Two decades ago, Tesla was a small Silicon Valley start-up with just a handful of employees, but big dreams of revolutionizing the auto industry. Today, it is the world's best-selling EV producer on the global market, with large factories around the world. It's also widely credited with proving that electric cars could be fast, powerful, fun and practical. Tesla's journey from a small start-up to a global leader is a testament to its innovative spirit and its commitment to sustainable transportation.
Musk has been the face of the company, driving it forward ever since he joined Tesla as chairman and principal funder in 2004. Four years later, he became CEO, and has remained in the post ever since, as the company has risen to prominence. His leadership has been instrumental in shaping Tesla's vision and its success.
"Tesla was the pioneer," says Stephanie Valdez Streaty, director of Industry Insights at Cox Automotive, a car industry marketing and software company. "They kind of brought EVs into the mainstream, got other manufacturers to start investing, and really created a lot of awareness." Her assessment highlights Tesla's pivotal role in transforming the automotive landscape.
It's easy to forget that electric cars were once derided as slow, uninspiring and impractical, with short ranges between charges. When the Tesla Model S went on sale in 2012, it had sports car performance and a range of more than 250 miles. It played a key role in changing perceptions, and provided a springboard for rapid growth. The Model S demonstrated the potential of electric vehicles and paved the way for future innovations.
Today, Tesla is more than just an EV producer. It is also investing heavily in autonomous driving systems, with the aim of building a fleet of driverless "robotaxis." It also has a fast-growing energy storage business, and is developing a general-purpose humanoid robot, called Optimus. These ventures reflect Tesla's ambition to expand beyond the automotive industry and become a leader in multiple technology sectors.
Just like Apple's late Steve Jobs, Musk has become the embodiment of his brand, regularly appearing at company events and product launches, and enjoying a cult following among EV enthusiasts. His personal brand has become closely intertwined with Tesla's identity, contributing to its success and its controversies.
But recently, the sustainable technology advocate has also become known for promoting his political views, and amplifying them through his own social network, X. At the same time, Tesla itself has been facing a growing number of challenges. The convergence of these factors has created a complex and uncertain environment for the company.
While its Model Y was the world's best-selling car last year, overall sales have fallen for the first time in more than a decade, from 1.81 million to 1.79 million. This decline raises questions about Tesla's ability to sustain its growth trajectory.
The fall was relatively small, and Tesla remains the world's best-selling EV maker, but for a business geared around growth, it has rung alarm bells. Full-year profits have also declined. The combination of these factors has raised concerns about Tesla's financial performance.
The start to this year has also been poor, especially in Europe, where new car registrations in January were down 45% compared to the same period in 2024. In February, sales fell further in key European markets—although the UK was an exception, with sales up 21%—as was Australia. These regional variations highlight the complex dynamics of the global EV market.
At the same time, sales of Tesla cars made in China—both for sale in China and for export—were down by more than 49% in the same month. This sharp decline raises concerns about Tesla's competitiveness in the Chinese market.
In early March, UBS Wall Street analyst Joseph Spak published a research note forecasting that Tesla's global sales would fall by 5% this year. The prediction, which flew in the face of market expectations for 10% growth, sent Tesla's share price tumbling. The stock fell 15% in a single day—and is now down 40% since the start of the year. This negative outlook has shaken investor confidence in Tesla's future prospects.
There are many reasons for the fall in sales, but research by brand monitoring company Morning Consult Intelligence suggests that Musk's activities have indeed damaged Tesla, especially in the EU and Canada—although not in China, which remains one of its biggest markets. This research provides evidence that Musk's actions are having a tangible impact on Tesla's brand image.
In the US, the picture is more nuanced, with many consumers approving of DOGE's cuts to government spending, the report says. However, it adds: "Musk may be alienating the American consumers who are most likely to buy a Tesla. Among high-income consumers who say they plan to buy an EV in the future, Tesla now ranks lower than competitors did a year ago." This finding suggests that Musk's political views are deterring some potential Tesla buyers.
Tesla did not respond to a request from the BBC for comment on its falling sales. The company's silence on the issue has fueled speculation about the underlying causes of the decline.
But experts believe Tesla's problems go beyond the public image of its CEO. A range of factors are contributing to the company's current challenges.
For one thing, the current model range, once cutting-edge, is now looking tired. The once groundbreaking Model S has been on sale since 2012, and the Model X since 2015. Even the newer, more affordable Model 3 and Model Y are starting to look dated in an increasingly competitive market. The lack of fresh models is a significant disadvantage for Tesla.
"If you look at their product line, they haven't had any new models recently, other than the Cybertruck, which is really niche," says Ms Valdez Streaty. "They did a refresh on the Model Y, but it didn't make a splash. And there's just a lot more competition in the market." The increased competition from other EV manufacturers is putting pressure on Tesla's market share.
Prof Peter Wells, director of the Centre for Automotive Industry Research at Cardiff University, makes a similar point: "We haven't seen the kind of level of innovation in terms of product range that Elon Musk should have been pursuing. I think that's a significant part of their problem." The lack of innovation is hindering Tesla's ability to maintain its competitive edge.
Competition is coming from multiple directions. Traditional manufacturers have invested heavily in switching to EV production, and companies like Kia and Hyundai in South Korea have built growing reputations for making high-quality battery-powered cars. The rise of these competitors is challenging Tesla's dominance in the EV market.
At the same time, a host of new EV brands have sprung up in China. They include companies like BYD, which has expanded rapidly by supplying well-performing cars at low prices, and more upmarket brands like Xpeng and Nio, which are focused on luxury and advanced technology. The emergence of these Chinese EV brands is transforming the global automotive landscape.
"China has amazing incentives and subsidies for electric vehicles," says Ms Valdez Streaty. These government policies are fueling the growth of the Chinese EV market.
"You're seeing Chinese companies, especially BYD, continue to grow, not only in China, but in other parts of the world. So that's definitely a huge threat, not just to Tesla, but to other manufacturers as well." The global expansion of Chinese EV brands poses a significant challenge to established automakers.
The extent of that threat was demonstrated in mid-March, when BYD announced that it had developed an ultra-fast charging system, which could give a car 250 miles of range in just five minutes, vastly quicker than Tesla's own supercharging network. This technological advancement highlights the growing competitiveness of Chinese EV manufacturers.
Comments made by Musk on Tesla's earnings calls suggest that his priorities lie elsewhere, particularly with self-driving cars. His focus on autonomous driving technology reflects his long-term vision for the future of transportation.
In January, he claimed that Tesla would be operating a robotaxi service in Texas by June. But that prompted mockery from some commentators, who pointed out that Musk has been promising such a thing for a long time. The repeated delays in the launch of Tesla's robotaxi service have raised questions about the company's ability to deliver on its promises.
For example, in 2019, he said that there would be a million Tesla cars on the road acting as robotaxis within a year. Meanwhile, Tesla's "full self-driving" suite remains a "hands-on" system, requiring drivers to stay alert at all times. The limitations of Tesla's current autonomous driving technology highlight the challenges of achieving full self-driving capability.
"Every year we get a new promise from Elon Musk about his self-driving cars that are just around the corner," says Jay Nagley of automotive consultancy Redspy. "The problem is, they never seem to find the corner they can come around from." The repeated delays and unfulfilled promises have eroded trust in Musk's claims about autonomous driving technology.
Arguably, Tesla needs strong leadership now. But whatever his political views, the CEO has a huge amount on his plate. He owns or runs a string of other businesses, most notably his social media platform X; the artificial intelligence company xAI; and the private space company SpaceX, which has recently suffered two failed launches of its giant Starship rocket. Musk's diverse business interests may be diverting his attention from Tesla's challenges.
In a recent interview with Fox Business, when asked how he was combining all of this with his new government role, Musk replied "with great difficulty." His admission highlights the challenges of juggling multiple high-profile responsibilities.
"It's difficult to say exactly how hands-on Musk is with the management of Tesla at the moment," says Prof Wells. The uncertainty surrounding Musk's level of involvement in Tesla's day-to-day operations raises concerns about the company's strategic direction.
"If he's making key decisions about product positioning, where factories are built, and so on, then those decisions have to be right. I think you need somebody who is fully engaged, 100% committed to understanding the auto industry, and getting those decisions right." The need for a dedicated and knowledgeable leader is crucial for Tesla's future success.
Ever since Elon Musk joined Tesla in 2004, his position has been unassailable. There are no obvious signs that this is changing. He remains the company's largest single shareholder, with a 13% stake—currently worth more than $95bn. His significant ownership stake gives him considerable influence over the company's direction.
That is roughly the same as the combined holdings of investment giants Vanguard and Blackrock, while a number of other financial institutions, including State Street Bank and Morgan Stanley, hold smaller stakes. The presence of these major institutional investors underscores Tesla's significance in the global financial landscape.
For those investors, the recent fall in the share price has been dispiriting. But it is still nearly 30% higher than it was a year ago. In fact, the recent falls have simply wiped out the dramatic gains that followed the election, which almost doubled Tesla's market valuation. Despite the recent setbacks, Tesla's stock performance remains strong over the long term.
Today, Tesla is still valued at more than 100 times its earnings—far higher than auto rivals like Ford, GM or Toyota, suggesting that shareholders are still pinning their hopes on technological breakthroughs and rapid growth. The high valuation reflects the market's expectations for Tesla's future potential.
"Tesla's valuation is that of a company that is either going to dominate electric vehicles—which, given the strength of the Chinese manufacturers, clearly isn't going to happen—or dominate robotaxis and autonomous vehicles," says Mr Nagley. The company's future success hinges on its ability to achieve these ambitious goals.
For now, no major investors appear to be calling for change—although in media interviews this week, one long-term shareholder and outspoken critic, the fund manager Ross Gerber, did call for Musk to step down. The lack of widespread calls for change suggests that most investors remain confident in Musk's leadership.
But analysts say that the business would benefit from fresh blood at the top. "There's no question that a new CEO for Tesla would be the best option for the company right now," says Matthias Schmidt of Schmidt Automotive Research. A change in leadership could bring new perspectives and strategies to address Tesla's challenges.
"It would solve the toxic contagion that Musk has created, provide a solution to his conflict of interest with his DOGE role, and allow a dedicated CEO to focus entirely on the job at hand." A dedicated CEO could provide the focus and expertise needed to navigate the current challenges.
"I think that's the clear direction of travel at the moment," says Prof Wells. "I think they need somebody with deep experience of the auto industry. Somebody who knows how to rationalize a business." A leader with industry expertise could bring much-needed stability and strategic direction to Tesla.
"There needs to be a major change of direction now." The need for a strategic shift is becoming increasingly apparent as Tesla faces growing competition and internal challenges.
