Tesla: could 2025 be A Turning Point for the Once-Untouchable Brand

Dr. Rana AlBahsh

Tesla has been one of the most talked-about companies in the world, known for its electric cars, big promises, and bold CEO, Elon Musk. But 2025 is turning out to be a tough year. The company is now dealing with political controversy, falling sales, product delays, and angry customers. So, what’s really going on with Tesla?

It all started when Elon Musk joined President Donald Trump’s team to lead the Department of Government Efficiency (DOGE). This move upset many of Tesla’s long-time supporters, who believed the company stood for clean energy and progressive values. Protests began at Tesla stores in cities like San Francisco and London, and even some Tesla charging stations, stores, and cars were vandalized. Experts say this new political role could hurt Tesla’s brand for a long time.

At the same time, Tesla’s business isn’t doing well. The company had promised self-driving taxis by 2020, but those still don’t exist. In 2024, Tesla showed off a humanoid robot called Optimus, but it wasn’t truly autonomous—it was remote-controlled. These broken promises are starting to show in the numbers.

Tesla reported its first annual drop in sales in 2024. In the first quarter of 2025, car deliveries fell by 13%, the worst in three years. Experts think things might get worse, predicting sales could drop another 9% this year. A big reason is that Tesla’s cars haven’t changed much, while other companies, like China’s BYD, are making better and cheaper electric cars.

The company also changed how it talks about the future. In 2022, it said it would grow by 50% each year. Now, it only says it “hopes” to grow again. Investors have taken notice and Tesla’s stock dropped more than 18% in just one week in April 2025.

Trade tensions are making things harder. China, Tesla’s second-biggest market, added a 34% tax on imported U.S. cars. The new U.S. tariffs could also raise the cost of key parts for Tesla’s batteries by 5–10%.

Even the technology that made Tesla famous is under pressure. Its Full Self-Driving (FSD) system still needs drivers to pay attention and take over when needed. Meanwhile, Google’s Waymo is already running fully driverless taxis in cities like San Francisco. In one tragic case, a Tesla using Autopilot ran a red light and caused a fatal crash. The driver was charged, not the company.

So, what does all this mean? Is Tesla at a big turning point? It’s still a major player in the electric vehicle world, but it has a lot to prove. Can it win back trust, improve its cars, and deliver on its promises? Or is the company losing its edge?