Tesla Loses Drivers to Musk's Controversies

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.

Tesla's portfolio of aging models is also a significant issue, with no completely new models launched since the Cybertruck in 2023. The company plans to discontinue its oldest vehicles, the Model S and Model X. This lack of new product development is a major driver for market share loss. Furthermore, complaints regarding outdated technology, inferior components, and subpar customer service have led some owners to switch to brands like Hyundai, often opting for vehicles in comparable or higher price bands.

Looking ahead, Tesla is focusing on robotics and potential mergers with its other ventures, like SpaceX and xAI. While brand loyalty has seen a slight increase possibly due to incentives and a more subdued persona from Musk, challenges remain. The company faces scrutiny over its "Full Self-Driving" claims in California, and full autonomy remains a distant prospect for many.