Elon Musk, CEO of the embattled electric vehicle maker Tesla, signaled earlier this week that he planned to step back from politics and focus on the struggling brand.
But a prominent and loyal Tesla cheerleader speculated that the automaker's image could be "stained forever" both in the United States and abroad, according to CNN, sparking worries that damage to the brand could discourage consumers from making the switch to environmentally friendly EVs.
What's happening?
During an earnings call on Tuesday, Musk assured investors that his "time allocation" to the controversial Department of Government Efficiency would "drop significantly" starting in May, per CNN.
Musk's decision to scale back his time with DOGE followed a devastating first quarter for Tesla, along with the largest drop in quarterly sales in the brand's history. In Q1, Tesla sustained a staggering 71% decline in sales over the same period last year, TechCrunch reported.
Dan Ives of Wedbush Securities is known for his tendency to remain bullish on Tesla stock. But in a note to clients on Wednesday, Ives adopted uncharacteristically bearish views on the automaker's fortunes.
According to CNN, Ives predicted that Musk's promised return would be insufficient as a means to offset the "brand damage [he] caused … over the past few months." Ives pointed to Musk's involvement in American politics as the primary cause of Tesla's sales woes, and posited that "some of the damage will be stained forever in Europe and the U.S."
Analyst Gordon Johnson of GLJ Research was far less optimistic, telling CNN that the "damage that [Musk has] done is 100% irreversible."
Why are Tesla's waning fortunes concerning?
While Tesla's EV market share is down from 80% in 2019, the automaker still cornered a little over 45% of the market as of February, per Edmunds.
Tesla's steep decline in popularity is global, and the brand's outsized presence and abrupt fall from grace — coupled with uncertainty introduced by fluctuating tariff policies — prompted concerns that the company's troubles could negatively impact the broader EV market.
However, Reuters recently reported that global EV sales were up 29% year-over-year in March, hinting that EV demand hasn't yet shown any signs of cooling.
TCD Picks » Upway Spotlight
💡Upway makes it easy to find discounts of up to 60% on premium e-bike brands
|
What do you think of Tesla and Elon Musk?
Click your choice to see results and speak your mind. |
Elon is the man 🥰 What can EV drivers do?
In spite of Tesla's volatile brand image, demand for EVs continues to grow — and on the upside, prices for used Teslas appear to be at an all-time low.
An overall bustling market has given rise to platforms like Recurrent, which connects buyers and sellers looking to get in or out of an EV.
Outside the U.S., Chinese EV maker BYD has seen booming sales in the wake of Tesla's ongoing decline, particularly in the Australian market.
American consumers interested in making the switch to an EV have more choices than ever before, with major brands like Hyundai and Kia's electrified models steadily cutting into Tesla's still-dominant market share.
Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Cool Picks
