Tesla has encountered significant challenges as its stock performance plummeted in February, marking its worst month since late 2022. The electric vehicle giant saw its stock fall by 28% in February, following a 37% drop in December 2022. This decline has been attributed to reduced average selling prices across Tesla's major product lines, including the Model 3, Model Y, Model S, and Model X.
In addition to financial setbacks, Tesla has faced declining new vehicle registrations in Europe. Notably, there has been a steep decline in countries such as France and across Scandinavia during the first two months of 2025. This trend raises concerns about Tesla's market presence and competitiveness in the European automobile sector.
Meanwhile, in the United States, owners of Tesla's Cybertruck have reported negative reactions to their vehicles. These challenges range from rude gestures to more severe forms of bullying or harassment. Such incidents have intensified scrutiny on Tesla's latest product offerings and their impact on customers.
A series of vandalism incidents at a Tesla facility in Loveland, Colorado, began on January 29. Additionally, dozens of Tesla electric vehicles were allegedly destroyed in a suspected arson attack in France on a recent Sunday night. These incidents have compounded the challenges facing the company, as it navigates through turbulent times.
Tesla's financial performance has also shown signs of distress. The company's automotive revenue sank by 8% compared to the previous year, while operating income dropped by 23% as reported in the company's fourth-quarter earnings in late January. These figures underscore the financial pressures Tesla currently faces.
On the technological front, Tesla appears to be trailing some of its rivals in self-driving technology. Alphabet-owned Waymo has announced that it is providing 200,000 trips each week across key U.S. cities such as San Francisco, Phoenix, and Los Angeles, showcasing its leadership position in the autonomous vehicle sector.
Amid these challenges, Tesla's CEO Elon Musk has drawn attention for his controversial use of social media. Musk has used X to spread misinformation about Ukrainian President Volodymyr Zelenskyy, baselessly accusing him of seeking a prolonged conflict with Russia.
Musk's current role as the head of the so-called Department of Government Efficiency (DOGE) has also sparked debate. This department is reportedly making sweeping cuts to the federal workforce, slashing federal spending, and aiming to eliminate regulations while consolidating agencies.
Furthermore, a movement dubbed the "Tesla Takedown" is gaining traction. This initiative encourages individuals to divest from Tesla and refrain from purchasing its products or services. Prominent figures such as Japanese American actor and author George Takei have voiced support for this movement through platforms like Bluesky.
"1000% gain for Tesla in 5 years is possible" – Elon Musk
Despite these adversities, Elon Musk remains optimistic about Tesla's prospects. He recently stated that a "1000% gain for Tesla in 5 years is possible," reflecting his confidence in the company's long-term growth potential.
Tesla and Elon Musk have not responded to requests for comments regarding these challenges and controversies. As the company continues to navigate through a complex landscape of financial setbacks, technological competition, and social movements, stakeholders are closely monitoring how it will address these pressing issues.