Pressure Mounts on Tesla as Markets and Politics Shift
Tesla’s fortunes are looking shakier than ever. The electric carmaker saw its stock crater by 14% in a single week, one of its sharpest slides in recent memory. For CEO Elon Musk, that means a staggering $120 billion evaporated from his personal wealth, suddenly putting his reputation as the world’s richest person on very thin ice.
This wasn’t a random blip. Over in Europe, numbers tell the hard truth: Tesla sales in Germany are down a jaw-dropping 71%, while Norway, France, and Spain all clocked drops of more than 40% year over year. Electric vehicles used to be a trendy, must-have in these countries, but now, with cheaper competitors and shifting incentives, buyers are losing their appetite for Teslas.
Meanwhile, China—the world’s biggest auto market—has become a real battleground. Homegrown EV giants like BYD aren’t just rivalling Tesla, they’re outmaneuvering it. BYD has been offering advanced driver-assistance systems for free, making Tesla’s pricey Full Self-Driving software look like a tough sell. Chinese consumers are leaping at better deals, leaving Tesla struggling to keep up.
In the US, the company has tried everything short of handing out cars for free. They slashed prices, dangled zero-percent finance offers, and even tossed in free Supercharging miles. But the demand hasn’t bounced back the way they hoped. Tesla’s cool factor isn’t what it used to be—and for many, the shine is off the Musk brand.
Musk Caught in Political and Financial Crosscurrents
It’s not just about sales charts and innovation. Elon Musk’s personal politics are burning bridges with powerful figures. His one-time alliance with Donald Trump and later public clashes have left him at odds with Republican leaders who once championed Tesla. It’s more than bad headlines—it translates into real losses, like fewer incentives or policy support for the company.
All these factors are feeding into a storm threatening Musk’s fortune and Tesla’s future. For years, Musk seemed almost untouchable, riding high on Wall Street’s confidence, political access, and a tidal wave of EV enthusiasm. Now, global competition is tougher, profit margins are squeezed, and government support looks less certain. The world’s richest title has always been a moving target—but for the first time in a long while, Musk is running out of buffer.
