Elon Musk Does Nothing to Prevent the Collapse of Tesla

Tesla, once the leading and undisputed company in the electric vehicle market (EV), is now facing significant challenges worldwide. The beginning of 2025 is particularly tough for the company, with sales falling sharply, increased competition, and growing concerns about Elon Musk's leadership ability. Although Tesla remains a dominant force in the industry, cracks are starting to appear, and the company must quickly adapt if it wants to maintain its position. Sales Volume Falls Sharply And Market Reaction Tesla's sales figures at the beginning of 2025 show a worrying trend. In Europe, the company has witnessed an astounding 45% fall in new registrations in January compared to the previous year, with a continued decline in February. This downturn indicates that Tesla is losing its strong position in a region where EV adoption is steadily growing. The situation is even worse in China, one of Tesla's key markets, where sales of vehicles produced in China have fallen by more than 49%. While the UK and Australia recorded sales growth of 21%, this growth is still not enough to offset the overall decline. Financial analysts are also beginning to express concerns. Joseph Spak, an analyst at UBS, predicts that Tesla's global sales could fall by 5% this year, despite initial expectations of a 10% growth. This forecast has led to a sharp drop in Tesla's stock price, reflecting investors' fears that the company's golden era may be coming to an end. Is this just a temporary fall? Some insiders at Tesla believe that the drop in sales was anticipated due to the upcoming launch of the new Model Y. Customers may be delaying their purchases, waiting for the latest version of Tesla's most popular car. However, this explanation does not account for the overall decline in consumer interest, especially in markets like Europe and China. According to Morning Consult Intelligence, Tesla's brand perception has been affected in several key areas, particularly in Canada and Europe. Meanwhile, China remains an essential market, but the company is struggling to maintain its position amid increasing competition from domestic brands. Tesla's Leadership Crisis Elon Musk's leadership style has always been unconventional, but recent events have raised concerns about whether he is still the right leader to lead Tesla. His increasing focus on political issues and controversial statements have caused potential customers to shy away, especially in the United States. Among high-income consumers planning to purchase electric vehicles, Tesla is now ranking lower than a year ago. In addition to public relations issues, there are deeper concerns about Tesla's lack of innovation in its product line. Professor Peter Wells, director of the Centre for Automotive Industry Research at Cardiff University, points out that Tesla has not introduced any breakthrough new models in recent years. While competitors have quickly improved their electric vehicle products, Tesla still relies heavily on existing models without significant updates. Competition is Increasing Tesla is no longer the only major company in the electric vehicle industry. Traditional automakers like Ford, General Motors, Hyundai, and Kia have actively expanded electric vehicle production, offering high-quality cars that can compete with Tesla's product line. These companies have decades of experience in mass production and supply chain management, giving them an advantage in effectively scaling up electric vehicle production. At the same time, Chinese electric vehicle brands such as BYD, Xpeng, and Nio are gaining market share by offering advanced technology vehicles at competitive prices. Notably, BYD has quickly expanded its market share, threatening Tesla's dominance in China. Tesla is also facing increasing legal pressure. The company's "Full Self-Driving" (FSD) technology is still in the process of being refined, despite Musk's long-standing promises. In 2019, he stated that Tesla would have one million robot taxis on the road within a year. However, even in 2025, Tesla's autonomous driving system still requires human oversight. The failure to fulfill past promises has eroded the trust of investors and consumers. Is it time for Musk to step down? Musk's attention is divided among many projects, including SpaceX, X (formerly known as Twitter), and his AI company xAI. Running Tesla alongside these projects is becoming increasingly difficult, and Musk himself admitted in an interview with Fox Business that managing all these responsibilities is "very challenging." Ross Gerber, a long-time investor in Tesla and a former supporter of Musk, recently called for Musk to step down as CEO. Analysts agree that a change in leadership could help stabilize Tesla. Matthias Schmidt of Schmidt Automotive Research argues that a new CEO would bring the much-needed focus and help the company steer clear of the controversies surrounding Musk. Professor Wells also believes that Tesla needs a leader with deep expertise in the automotive industry. "Tesla needs someone who can streamline the business operations and take the company in a new direction," he said. The Future of Tesla Despite recent failures, Tesla remains a major force in the electric vehicle industry. The company's stock, although volatile, has increased by about 30% compared to a year ago. Investors continue to bet on Tesla's long-term growth and technological breakthroughs. However, Tesla cannot be complacent. To regain its momentum, the company must: Expand the product line – Tesla needs new models and significant improvements over the outdated Model 3 and Model Y. Improve affordability – With increasing competition from inexpensive electric vehicles from China, Tesla must find ways to make its car prices more competitive. Regain consumer trust – Musk's controversial statements have driven potential customers away. A new leadership approach may be needed. Deliver on promises – Tesla's self-driving technology has been overhyped for years. The company must make significant progress or shift focus to realistic goals. If Tesla does not adapt, the company risks losing its leading position in the electric vehicle market. The next few years will be crucial in determining whether Tesla continues to be the leading company or just another car manufacturer struggling to survive.