Elon Musk’s Collapse? Tesla Loses Billions in Market Value, Stocks Plummet From $479 to $282 and Profits Melt Away

Written by Noel Budeguer

Published on 02/05/2025 at 17:08

O colapso de Elon Musk? Tesla perde bilhões em valor de mercado, ações afundam de US$ 479 para US$ 282 e lucros derretem

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Tesla in Crisis: Analysts Warn of Accelerated Decline Amid Financial Losses and Public Rejection

The Tesla, once a symbol of innovation in the automotive sector, is facing a perfect storm: a sharp decline in profits, loss of market share, and a growing public rejection linked to the political controversies surrounding its CEO, Elon Musk. In a highly competitive and geopolitically unstable environment, the company’s leadership in the electric vehicle sector is under serious threat.

Declining Financial Results and Aggressive Competition

In the first quarter of 2025, Tesla reported revenue of US$ 19.34 billion, a 9% drop compared to the same period last year. Net income plummeted 71%, totaling US$ 409 million, below Wall Street expectations. Global vehicle deliveries fell to 336,681 units, a decrease of 13% compared to the previous year, marking the worst quarter since 2022.

Meanwhile, competitors like the Chinese BYD and the American General Motors are rapidly advancing. BYD sold approximately 540,000 electric vehicles in the first two months of 2025, an increase of 80.3% compared to the previous year. In the United States, GM increased its electric vehicle sales by 94% in the first quarter, reaching a market share of 11%, according to Business Insider.

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Political Controversies and Brand Image Damage

Elon Musk’s association with Donald Trump’s government, particularly his leadership of the Department of Government Efficiency (DOGE), has sparked criticism and protests. Research indicates that about 60% of American consumers have a negative view of Musk. In traditionally progressive states like California and New York, boycott campaigns against Tesla have gained traction.

Protesters demonstrate against Elon Musk’s cuts and that of the DOGE in front of a Tesla dealership in Kansas City, Missouri, on April 12. Photograph: Charlie Riedel/AP.

In Europe, the impact is even more visible. Tesla’s sales have plummeted: 81% in Sweden, 74% in the Netherlands, and 67% in Denmark in April 2025. A striking case is that of Lars Johansen, a 42-year-old Danish consumer who canceled the purchase of a Model Y after Musk’s political statements. “I admired Tesla, but I cannot support a company whose leader promotes ideas I do not agree with,” Johansen said.

Musk’s Succession and Possible Paths for Tesla

Amid the climate of instability, rumors about a possible replacement for Elon Musk as CEO began circulating following a report from the Wall Street Journal. The board chair, Robyn Denholm, strongly denied, calling the information “absolutely false.”

Analysts also express concern. Dan Ives from Wedbush Securities commented, “Musk’s leadership is central to Tesla’s identity, but his political distractions are hurting the company. It’s time for him to focus entirely on Tesla,” he told Reuters.

In response, Musk announced that he would reduce his involvement with DOGE starting in May, promising to dedicate more time to the automaker, according to The Guardian.

As an attempt at recovery, Tesla announced the launch of its highly anticipated Robotaxi service in Austin, Texas, for June 2025. A cheaper version of the Model Y is also in planning, aimed at price-sensitive consumers—a market where brands like BYD, Hyundai, and Volkswagen have been rapidly advancing.

Despite strategic bets, Tesla’s recovery will depend on more than just launches or future promises. Rebuilding trust among consumers, investors, and business partners will be necessary. And for that, a redesign in Musk’s public stance and a new market approach may be essential.

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Gbmartins

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02/05/2025 17:29

Ele, pensava que ( como se diz aqui na BA ) beiço de jegue é arroz doce…

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Elon Musk’s Collapse? Tesla Loses Billions in Market Value, Stocks Plummet From $479 to $282 and Profits Melt Away

Tesla in Crisis: Analysts Warn of Accelerated Decline Amid Financial Losses and Public Rejection

Declining Financial Results and Aggressive Competition

Political Controversies and Brand Image Damage

Musk’s Succession and Possible Paths for Tesla

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Elon Musk’s Collapse? Tesla Loses Billions in Market Value, Stocks Plummet From $479 to $282 and Profits Melt Away

Tesla in Crisis: Analysts Warn of Accelerated Decline Amid Financial Losses and Public Rejection

Declining Financial Results and Aggressive Competition

Political Controversies and Brand Image Damage

Musk’s Succession and Possible Paths for Tesla

A village with 115 inhabitants wants new residents: it offers a house, a job, up to 44 thousand euros in benefits, almost free rent, an annual grant of 8 thousand euros for 3 years, and a 20 thousand euro incentive for businesses in the mountains of Italy.

Seven world powers including the US, China, and Russia are spending €22 billion on a reactor in the south of France that aims to confine plasma at 150 million degrees Celsius, ten times the temperature of the Sun’s core, using a magnetic field capable of lifting an entire aircraft carrier.

With a wingspan of 152 meters, 76 tires, and a capacity to carry 1,270 tons, the Boeing Pelican was the giant “flying ship” that promised to cross oceans close to the water on an invisible air cushion beneath its wings.

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