Once thought of as a tech visionary and modern-day Edison, Elon Musk is now facing one of the biggest hurdles of his career… and it has nothing to do with rockets or robots. Tesla, his crown jewel in the EV revolution, is grappling with serious brand damage that could take much longer to repair than it did to inflict.
In just a matter of months, Tesla has seen its reputation take a hit following Musk’s increasingly polarizing political stances and public alignment with far-right ideologies. That backlash is proving costly: the company’s profits have been slashed by nearly 66% this year alone. Sales are down sharply, fueled by widespread protests and growing boycotts.
To make matters worse, competition from EV giants in China, Europe, and the U.S. is heating up, leaving Tesla struggling to maintain its edge in a market it once dominated.
This week, however, Musk attempted to reassure investors. During an earnings call on Tuesday, he revealed that he would scale back his political pursuits in Washington to just “a day or two per week” and return his focus to Tesla’s day-to-day operations. The announcement sparked a brief rally, with Tesla shares climbing 5% on Wednesday… but analysts say the real work is just beginning.
Despite the turmoil, Musk downplayed the brand backlash during the investor call. He instead attributed Tesla’s sluggish first-quarter performance to a temporary pause in production due to upgrades on the best-selling Model Y. According to him, the factory downtime disrupted both supply and demand… though critics argue that the real issue runs deeper.
Now, as Tesla fights to regain its footing, one question looms large: Can Musk rebuild trust and restore the company’s image, or has the damage already been done?
