March 19, 2025

Has Musk Become Tesla’s Biggest Risk Factor?

For years, Elon Musk was Tesla’s greatest asset—a visionary leader who turned an ambitious startup into a global EV powerhouse. But in 2025, with Tesla’s stock nearly halved, sales declining, and customers frustrated, many are wondering: Is Musk now Tesla’s biggest liability?

Recent reports suggest that Tesla’s struggles aren’t just about increasing EV competition or market slowdowns. Musk’s personal actions, political shifts, and business distractions are playing a major role in Tesla’s downturn. Let’s break it down.

Tesla’s Stock is Falling—And Musk’s Decisions Are a Key Factor

Over the past year, Tesla’s stock has taken a major hit, dropping nearly 50% from its highs. While part of this decline can be attributed to broader market conditions, analysts point to Musk’s controversial actions and political alignment as a growing risk for investors.

Tesla’s core customers are distancing themselves.
- Tesla was once the car of choice for progressive, environmentally-conscious buyers, but Musk’s recent alignment with right-wing politics and controversial statements has alienated a significant portion of this base.
- In key markets like Europe and China, Tesla’s sales have declined, as former fans look at alternative EV brands.

Musk is spending more time on X (Twitter) and politics than Tesla.
- Instead of focusing on improving Tesla’s Full Self-Driving (FSD) rollout, expanding new models, or fixing production issues, Musk has been deeply involved in political discourse and social media controversies.
- Investors and analysts don’t see a clear Tesla growth strategy—only distractions.

Competitors are catching up while Tesla stalls.
- Tesla’s once-dominant tech advantage is shrinking as legacy automakers like Ford, GM, and even Hyundai develop competitive EVs with better pricing, better interiors, and better software experiences.
- Meanwhile, Tesla has delayed the launch of its next-gen affordable EV, a move that could cost it even more market share.

Tesla Owners Are Getting Frustrated

For years, Tesla’s most loyal supporters—EV enthusiasts, early adopters, and fans of innovation—stuck with the brand despite delays, quality control issues, and pricing fluctuations. But now, even some of Tesla’s biggest fans are starting to express frustration.

Supercharger Network Controversies: While Tesla once had an exclusive fast-charging network, opening it up to Ford, GM, and others has made Tesla drivers feel like they’re losing a key advantage.

Software & FSD Delays: For nearly a decade, Musk has annually projected the arrival of fully autonomous Teslas 'next year.' While many owners have invested thousands in the FSD package, the system still requires active driver supervision and has not yet achieved full autonomy

Price Drops & Resale Value Issues: Frequent price cuts have made existing Tesla owners feel like they overpaid, while resale values have dropped significantly.

Many Tesla owners bought into the brand because they believed in Musk’s vision—but now, they’re questioning whether Tesla is still on the right track.

What Does This Mean for Tesla’s Future?

For investors and longtime Tesla fans, the big question is: Can Tesla thrive despite Musk’s controversies?

Some believe Tesla needs new leadership—a CEO who can focus on the company’s mission without unnecessary distractions. Others think Musk is still Tesla’s biggest advantage, despite his flaws.

But one thing is clear: Tesla is at a turning point. If it wants to maintain its dominance in the EV industry, it needs to:

✔ Win back trust from its core customers.

✔ Refocus on innovation rather than online distractions.

✔ Prove that Tesla’s success isn’t entirely dependent on Musk’s unpredictable behavior.

What do you think—is Musk still the best leader for Tesla, or has he become its biggest risk?