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Tesla Loses Drivers to Musk's Controversies
5 Feb
Summary
- Customer dissatisfaction with Elon Musk impacts Tesla sales.
- Broader EV market slowdown and increased competition hurt Tesla.
- Aging models and new product delays contribute to market share loss.
Tesla's sales have experienced a decline, with a 9% drop worldwide in 2025 and a 7% decrease in the US. California, Tesla's largest US market, saw its share of new vehicle registrations fall below 10% in 2025. While customer dissatisfaction with CEO Elon Musk's public actions is cited by some as a reason for switching to other brands like Audi, it is not the sole cause of Tesla's struggles.
The electric vehicle market itself is facing a global slowdown, with projected growth rates decreasing significantly from previous years. Factors such as the expiration of federal tax credits, reduced emissions waiver revenues, and consumer concerns about battery degradation and rapidly evolving technology contribute to this trend. Additionally, Tesla faces intense competition from over 100 EV models now available in the US, leading to its market share dipping below 50% for the first time in 2024.
