the downfall of tesla
Elon Musk’s increasing interference in global democratic processes has sparked growing concern among investors, employees, and the public, casting a shadow over Tesla’s reputation. Once seen as a visionary leader, Musk’s controversial political entanglements and online provocations have alienated key stakeholders. Recent protests by Tesla workers and critics outside company facilities reflect a deepening discontent with his leadership, suggesting that his political meddling may be costing him the respect and confidence that once fueled Tesla’s rise.
Trump Tower Cybertruck Fire
Summary
A fatal explosion occurred outside President-elect Donald Trump's Las Vegas hotel on January 1, 2025, when a Tesla Cybertruck, reportedly carrying fireworks, caught fire and exploded. The driver, Matthew Livelsberger, a 37-year-old Green Beret from Colorado, died in the blast, and seven bystanders suffered minor injuries. Livelsberger, who struggled with PTSD, left a note describing the explosion as a "wake-up call" to highlight the country's issues and to "cleanse my mind" of the burden from his military service.
Motive
Livelsberger, a highly decorated Army veteran with five Bronze Stars, had recently returned from an overseas assignment and was on approved leave when he died. Investigators suspect his mental health may have contributed to the incident, and while the explosion occurred outside a Trump hotel, there is no evidence suggesting a political motive. Authorities are also exploring personal issues, including a possible argument with his wife, as they investigate his motives further.
Trump Buys Tesla in front of White House
President Donald Trump turned the South Lawn of the White House into a makeshift Tesla showroom, personally showcasing the company’s vehicles alongside CEO Elon Musk. In a highly publicized event, Trump announced plans to buy a red Model S as a show of support for Musk and Tesla, calling the cars “beautiful” and praising the Cybertruck's design. The event, livestreamed by the White House on Musk’s social platform X, raised ethical concerns due to the rare and explicit presidential endorsement of a private product, drawing criticism from lawmakers.
The move comes as Tesla faces falling stock prices, labor unrest, and backlash over Musk’s growing political role, including his position in Trump’s administration and promotion of far-right groups. Trump’s close alliance with Musk reflects a shift from his earlier populist messaging to favoring billionaire backers. Musk, who donated heavily to Trump’s campaign, now heads a new government efficiency department and is involved in controversial cost-cutting measures. Despite legal challenges and internal tensions over Musk's influence, Trump has publicly praised him, calling him a “patriot” and defending Tesla against recent vandalism and criticism.
Tesla stock price downfall
Elon Musk's Negative Tesla Influence
Tesla’s stock has experienced a dramatic decline in 2025, falling by 45% since Donald Trump took office, largely due to Elon Musk’s controversial political role in the Department of Government Efficiency (DOGE) and Tesla’s worsening financial performance. Quarterly profits have dropped 71% year-over-year, sales have fallen sharply in key markets like Europe and China, and Tesla has removed its 2025 growth forecast. The company is also struggling with increased competition from Chinese EV makers and supply chain vulnerabilities due to trade tensions with China.
"Surprising Rebound"
Despite these challenges, Tesla’s stock recently saw a surprising rebound, rising over 7% in pre-trading after Musk announced plans to step back from political duties and refocus on corporate leadership. Analysts attribute the rally to rock-bottom investor expectations, potential long-term optimism about Tesla’s technology, and a broader market uplift from Trump’s tariff rollback. Still, investor confidence remains fragile, as Tesla’s valuation continues to hinge heavily on uncertain future products like humanoid robots and autonomous vehicles.
Tesla Protests
Berlin
Several Tesla vehicles were set on fire in Berlin amid ongoing global protests against Elon Musk and his company. German police reported that four Teslas were destroyed in two neighborhoods overnight, with five other nearby vehicles also damaged. While no injuries occurred, authorities have not ruled out a political motive and have handed the investigation to the State Security Division, which handles threats to the state such as extremism and terrorism.
The attacks come in the context of escalating backlash against Musk’s political affiliations, especially his role in the Trump administration and support for Germany’s far-right AfD party. Anti-Musk sentiment has spurred similar protests and acts of vandalism targeting Tesla sites in Germany and beyond, including controversial public displays criticizing Musk. Tesla’s declining stock price has also been linked to Musk’s political entanglements.
London
In London, the Tesla Takedown movement drew about two dozen protesters outside a Tesla dealership as part of a global day of action against Elon Musk. Demonstrators held signs criticizing Musk, with one comparing him to Adolf Hitler and another, held by someone in a dinosaur costume, reading, “You thought the Nazis were extinct. Don’t buy a Swasticar.” Passing vehicles honked in support as the protestors aimed to raise awareness about Musk’s political influence and controversial behavior.
Cam Whitten, an American protester in London, emphasized the need to “make noise” and alert the public to the perceived dangers Musk poses. The protest was part of a broader campaign backed by frustrated Tesla owners, celebrities like John Cusack, and politicians such as Rep. Jasmine Crockett, who encouraged continued public pressure in tandem with her efforts in Congress.
America
Nationwide protests erupted targeting Tesla dealerships in opposition to Elon Musk's leadership role in the Department of Government Efficiency (DOGE), where he has controversially shut down agencies and gained access to sensitive data. Demonstrators accused Musk of driving the U.S. toward authoritarianism while continuing to lead Tesla, which remains the core of his $340 billion fortune. Protesters aimed to escalate pressure on the company and deepen its recent sales decline by attempting to surround all 277 U.S. Tesla showrooms and service centers.
Crowds gathered at Tesla locations across the country, from New York and Texas to California and Washington, chanting slogans like “Honk if you hate Elon” and “Elon Musk has got to go.” The protests, some drawing hundreds of participants, reflected mounting public backlash to Musk’s dual roles in business and government. While counterprotesters appeared in smaller numbers, the demonstrations marked the largest coordinated anti-Tesla action to date, highlighting growing tensions over Musk’s influence and political entanglements.
Pam Bondi - destroying Tesla is Domestic Terrorism
U.S. Attorney General Pam Bondi strongly condemned recent attacks on Tesla properties, labeling them acts of "domestic terrorism." Announcing federal charges against three individuals involved in violent incidents across South Carolina, Colorado, and Oregon, Bondi emphasized the seriousness of the crimes, which included the use of Molotov cocktails and possession of illegal weapons. She stated, “The days of committing crimes without consequence have ended,” and warned that anyone participating in similar actions against Tesla would face prison time.
Bondi’s comments came just two days after she publicly declared that attacks on Tesla would be treated as domestic terrorism. Her stance reflects a broader push from the Department of Justice under the Trump administration to crack down on politically motivated violence targeting Elon Musk’s company.
Tesla fraudulently claimed over C$43 million in rebates by reporting fake car sales.
Banned from Canada’s EV Rebate Program
Tesla is under serious scrutiny in Canada after being permanently banned from the country’s electric vehicle (EV) rebate program. The ban follows suspicions that Tesla fraudulently claimed over C$43 million in rebates by reporting an implausible volume of car sales in the final days of the program in January 2025. Four Tesla-owned dealerships are said to have filed for 8,653 EV rebates in a single weekend, despite evidence suggesting they couldn’t have delivered that many cars.
Rebates
The rebate program was exhausted prematurely, leaving non-Tesla dealers stuck with about C$10 million in unreimbursed rebates, as they had already passed the promised funds on to customers. The Canadian Auto Dealers Association accused Tesla of gaming the system, and politicians are now facing public pressure to go further and possibly ban Tesla from Canada entirely.
Global Decline in Tesla Sales
This controversy comes amid a steep global decline in Tesla sales, especially after Elon Musk’s visible alignment with Donald Trump. Countries like the UK and France are reconsidering Tesla’s eligibility for EV subsidies, while sales have plummeted across Sweden, Denmark, and the Netherlands.
Musk allegedly altered odometers to not give people their warranties for Teslas
A California Tesla owner has filed a proposed class-action lawsuit accusing the company of manipulating vehicle odometers to make warranties expire prematurely. The plaintiff, Nyree Hinton, claims his Model Y consistently overestimated mileage, sometimes by more than 100%, while under warranty, only to underreport mileage once the warranty expired. The suit alleges Tesla uses a software-based odometer system that relies on data algorithms rather than actual distance traveled, enabling the company to inflate mileage and limit warranty coverage. If proven true, the practice could amount to odometer fraud, a federal crime with serious legal consequences.