By: Alberto Giovanelli
The abrupt decline of Tesla has left Elon Musk with a somber tone and few firm promises. The company is facing losses, an image crisis, and growing doubts about its future, while its CEO remains tied to the Trump administration and increasingly radical policies. A recent poll by The Associated Press-NORC Center for Public Affairs Research shows that his popularity has declined as his influence in Washington has grown.
Tesla has started the year with disappointing numbers and a notable 71% drop in quarterly profits. But beyond the cold financial data, Musk’s tone during the earnings call made clear a bleak outlook. Amid a struggling business strategy, a controversial political alliance, and a future full of technological uncertainty, the billionaire’s image appears to be faltering.
An unfortunate quarter Tesla
Due to a sharp decline in electric vehicle sales Tesla reported a 71% drop in profits during the first quarter. The company posted $19.3 billion in revenue, a 9% decrease compared to the same period last year. A total of 362,000 vehicles were produced and over 336,000 were delivered, though deliveries of the Model 3 and Model Y fell by 12%.
Adjusted earnings per share came in at just 27 cents, well below the 41 cents analysts had expected. The only bright spot was the $595 million generated from carbon credits—without which Tesla would have posted operating losses.
Trump and politics as a distraction
While Tesla’s finances waver, Musk remains involved with the DOGE (Department of Government Efficiency), an entity that has overseen mass layoffs at 27 U.S. government agencies and has been accused of undermining vital public services. Despite lacking direct legal authority, Musk has pushed for cuts in funding and personnel—a move criticized by both experts and lawmakers.
During the earnings call, Musk claimed that protests against him were “organized and funded” by people interested in preserving fraudulent state benefits, though he provided no evidence. He also stated that he would step down from DOGE in May but clarified that he would remain connected to the government throughout Trump’s presidency—even beyond its legally mandated four-year term.
Uncertain Future, Inflated Expectations
Throughout his career, Musk has often tried to divert attention from critical moments with headline-grabbing announcements. Following negative revelations in April 2024—such as the cancellation of the long-awaited $25,000 car—Musk announced the development of a robotaxi, which launch was postponed to the fall and eventually scrapped.
This time, he once again promised that autonomous taxis would be launched in Austin in June, though he avoided giving clear answers about the remote-control mechanisms required for their operation. Experts in autonomous driving estimate that full-scale deployment of Cybercabs could take decades—if it ever happens.
Social Backlash and Image Decline
Protests outside Tesla dealerships, acts of vandalism, and even federal terrorism charges against some demonstrators reflect growing disapproval of Musk and his actions. Once seen as a disruptive innovator, he is increasingly perceived as an authoritarian tycoon with dangerous ties. The public’s waning perception of Trump is dragging down Tesla and Musk with it, directly impacting consumer purchasing decisions.
Trump’s aggressive tariff stance has put Tesla in a difficult position. While all of its U.S.-sold vehicles are assembled domestically, its global supply chain—especially battery components sourced from China—makes it vulnerable to additional import taxes.
Because of this, and due to the erosion of his public image, Elon Musk appears to be seeking distance from the Trump administration, despite claiming to be leading a “revolution” that in reality is nothing more than a frontal assault marked by budget cuts to social safety programs—sparking fear among the population as these policies continue to advance.
In this context, it is no surprise that global enthusiasm for Tesla and Musk is waning. Amid mediocre financial results, broken promises, questionable political ties, and increasingly erratic leadership, the future of the company—and its founder—is shrouded in uncertainty.
