Tesla’s sales are declining due to reasons beyond Elon Musk’s antics. The electric vehicle maker faces several challenges, including the impact of President Trump’s trade policies. Trump’s tariffs on metals will significantly affect American industry, causing costs that may be difficult to recover.
Additionally, China’s AI boom is experiencing rapid growth, but potential setbacks could occur if the world’s largest tech markets become wary of partnerships and collaborations. A recent example is Mistral, a European AI startup that has gained significant traction by not being based in either the US or China. This approach may prove beneficial in navigating complex global regulations.
While Trump’s endorsement of Tesla’s electric vehicles may provide some relief, it is unlikely to halt the company’s sales decline and share price slump. Factors such as trade policies, economic uncertainty, and shifting AI landscape are more pressing concerns for the carmaker.
Source: https://www.economist.com/business/2025/03/12/elon-musks-antics-are-not-the-only-problem-for-tesla