Tesla's first quarterly earnings report since Elon Musk joined the Trump administration showed a 71 percent drop in profits compared to the same period last year. This has led to criticism of Musk's leadership, with one investor calling him "delusional."
The article suggests Musk underestimated the backlash against his involvement in the Trump administration and its impact on Tesla's brand. His actions alienated environmentally conscious consumers who had previously supported Tesla.
Tesla's image has shifted dramatically. Previously embraced by liberals and environmentalists, it is now defended by conservative media outlets, while its previous supporters are abandoning the brand due to Musk's political affiliations.
Beyond Musk's leadership, Tesla faces growing competition from other electric vehicle manufacturers, particularly those in China, who are rapidly developing superior technologies like fast charging.
The central argument revolves around Musk's lack of understanding of public perception. His focus on technological innovation has blinded him to the impact of his political actions on Tesla's brand and sales.
The article concludes by questioning whether Tesla's current challenges, stemming from both Musk's actions and growing competition, pose an existential threat to the company's future.