Tesla, the electric vehicle giant founded by Elon Musk, is facing significant challenges. Sales have plummeted 50% in Europe and 11.5% in China, its largest market, compared to last January. The share price has dropped 22% since its post-election peak in December.
Musk’s business empire relies heavily on Tesla’s stock performance, which also affects his personal wealth and ability to fund other ventures like SpaceX and Twitter. The company’s stock price is under pressure due to increasing competition from Chinese manufacturers, who offer affordable electric vehicles with cutting-edge technology.
Chinese companies like BYD are selling electric cars for as little as $10,000, significantly cheaper than Tesla’s models. Western brands like Volkswagen struggle to compete, and even with a 100% tariff imposed on imports to the West, BYD still undercuts the cheapest Western-made EVs.
Investors are growing increasingly nervous about Musk’s leadership style, particularly his hands-on involvement in the company. While he has been praised for his vision, his erratic decisions, such as laying off 14,000 employees last year, have raised concerns among investors and loyal owners.
Experts believe that Tesla’s premium brand image may be enough to protect it from the impact of cheap Chinese EVs, but Musk’s leadership is also its greatest liability. The company’s ability to innovate and adapt to changing market conditions is crucial for its survival.
Source: https://www.telegraph.co.uk/business/2025/02/10/musk-is-taking-over-washington-but-he-needs-to-watch-back