Ben Kilbey, a longtime advocate for electric vehicles, has decided to part ways with his Tesla Model Y after three years. Despite supporting sustainable businesses in the UK, he is troubled by Tesla CEO Elon Musk’s leadership and recent political actions.
“I don’t believe in polarizing actions or a lack of empathy,” Kilbey explains. “There are ways to lead without alienating or demeaning others.”
Kilbey’s sentiments reflect a growing discontent toward Musk. The controversy intensified after Musk took charge of the Department for Government Efficiency (DOGE), a controversial initiative aimed at cutting federal spending. His involvement in global politics—such as appearing at a rally for the far-right Alternative für Deutschland party in Germany and openly criticizing British Prime Minister Keir Starmer—has further fueled the backlash.
Protests against Musk’s actions have erupted outside Tesla dealerships across the US, Canada, the UK, Germany, and Portugal. While most demonstrations remain peaceful, incidents of vandalism at showrooms, charging stations, and Tesla vehicles have been reported. In France and Germany, several Tesla cars were set on fire in separate incidents.
The Tesla Cybertruck, with its distinctive metallic design, has become a primary target of this anti-Musk sentiment. Viral videos on social media show the trucks covered in graffiti, dumped with trash, and even used as skate ramps. President Donald Trump has defended Tesla, calling the attacks on showrooms “domestic terrorism” and showcasing Tesla vehicles outside the White House.
Musk has responded strongly. “This level of violence is insane and deeply wrong,” he said in an interview. “Tesla makes electric cars and has done nothing to deserve these attacks.”
Tesla’s Market Struggles Intensify
Despite the ongoing controversy, Tesla’s challenges extend beyond Musk’s political involvement. The company is facing increasing market pressure, slowing sales, and intensified competition.
Once the undisputed leader in the electric vehicle industry, Tesla has seen its dominance wane. With massive factories worldwide, the company revolutionized EVs by making them powerful and practical. However, Tesla’s first-ever annual sales decline has raised concerns. In 2024, sales dropped from 1.81 million to 1.79 million, marking the first decrease in over a decade. Additionally, annual profits have shrunk.
In Europe, the start of 2025 has been particularly difficult. Tesla registrations fell by 45% in January compared to the same month last year. February sales continued to decline in most major European markets, except for the UK, where sales rose by 21%. In Australia, Tesla also reported a drop in sales. China, a key market for Tesla, saw a significant 49% drop in shipments for both domestic and international sales in February.
Financial analysts are adjusting their forecasts. Joseph Spak of UBS recently predicted a 5% decline in Tesla’s global sales this year, contrasting earlier market expectations of a 10% increase. This forecast triggered a sharp 15% drop in Tesla’s stock price in a single day, deepening an overall decline of 40% since the beginning of the year.
According to brand monitoring firm Morning Consult Intelligence, Musk’s actions have negatively impacted Tesla’s reputation in the EU and Canada, though China remains a stronghold. In the US, opinions are divided. While some consumers support DOGE’s government spending cuts, high-income buyers interested in EVs have ranked Tesla lower compared to last year.
Increasing Competition and Stagnant Lineup
Tesla’s biggest challenge may not be Musk’s controversies but its aging lineup and increasing competition.
The Model Y was the world’s best-selling car last year, yet Tesla’s overall sales declined. The Model S, launched in 2012, and the Model X, introduced in 2015, have not seen major upgrades. Even the Model 3 and Model Y, once cutting-edge, now appear outdated compared to newer rivals. The much-anticipated Cybertruck has generated buzz but remains a niche product.
“If you look at Tesla’s lineup, there haven’t been many fresh offerings,” says Stephanie Valdez Streaty, director of industry insights at Cox Automotive. “Aside from the Cybertruck, the Model Y received only minor updates. Meanwhile, competitors are rolling out advanced models.”
Peter Wells, an automotive expert at Cardiff University, agrees. “Tesla hasn’t maintained its early lead in product development. That’s a significant problem.”
Legacy automakers and new players are rapidly gaining ground. Korean brands Hyundai and Kia have gained recognition for high-quality EVs, while Chinese manufacturer BYD is advancing with cost-effective, high-performance models. BYD’s latest breakthrough in ultra-fast charging technology—achieving 250 miles of range in just five minutes—highlights the intensifying competition.
Is Musk Overcommitted?
Musk has increasingly shifted Tesla’s focus to autonomous driving. In January, he claimed Tesla would launch a robotaxi service in Texas by June. However, skepticism remains high, as Musk has repeatedly made similar promises over the years. In 2019, he predicted a million self-driving Tesla taxis, yet the current “Full Self-Driving” software still requires human oversight.
“Every year, Musk says self-driving cars are just around the corner,” says Jay Nagley of Redspy Automotive. “But they never seem to arrive.”
Tesla is at a crossroads and needs strong leadership. However, Musk is juggling multiple ventures, including his social media platform X, AI company xAI, and aerospace firm SpaceX, which has faced recent setbacks with Starship rocket launch failures.
In a recent interview, Musk admitted that managing all these roles is “extremely difficult.” Professor Wells questions whether Musk is providing Tesla with the focused leadership it needs. “If he’s making key decisions, those decisions must be right. Tesla requires full-time leadership from someone embedded in the auto industry.”
Calls for Change at the Top
Despite its struggles, Tesla remains highly valued at over 100 times its earnings—far exceeding competitors like Ford, GM, or Toyota. Investors still expect breakthroughs in EVs or autonomous driving, but some experts argue the company needs a leadership change.
“Tesla’s valuation suggests dominance in EVs or robotaxis,” says Nagley. “But neither seems likely given the strength of Chinese automakers and delays in self-driving technology.”
Although major investors haven’t called for Musk’s removal, some longtime shareholders are raising concerns. Ross Gerber, a well-known Tesla investor, recently called for Musk’s resignation, citing conflicts of interest and growing brand damage.
“Tesla would benefit greatly from a new CEO,” says Matthias Schmidt of Schmidt Automotive Research. “Fresh leadership could address Musk’s controversies, resolve his government role conflict, and provide a dedicated executive to steer the company forward.”
Professor Wells echoes this sentiment. “Tesla needs an experienced automotive leader to rationalize its operations and set a clear strategy. It’s time for a major shift.”
As Tesla faces mounting pressure from investors, consumers, and competitors, the question remains: Can the company continue to thrive under Musk’s leadership, or is it time for a new direction?
