Tesla is facing a turbulent period, with significant challenges affecting its reputation and stock value. Recent developments, including a large recall and mounting protests, have raised concerns among investors and the public.
According to The Guardian, the company has recalled 46,000 Cybertrucks in the U.S. over safety issues with an exterior trim panel. These events coincide with growing opposition, with global protests set for later this month, intensifying scrutiny on Tesla’s leadership and future direction.
Elon Musk’s Political Involvement Draws Criticism
Tesla’s CEO Elon Musk has come under increasing scrutiny for his high-profile involvement with the Trump administration. Musk’s leadership of the Doge initiative, a controversial government efficiency project, has led to accusations of undermining public services.
Investors and critics argue that this involvement is damaging Musk’s personal reputation and the brand of the company he runs.
A US judge recently ruled that Musk and Doge may have violated the US constitution by shutting down the US Agency for International Development, further complicating the company’s position.
Protests and Recalls Signal Growing Unrest
Protest group Tesla Takedown has announced its largest-ever demonstration, with more than 500 protests planned for Tesla showrooms worldwide on March 29.
The group has accused Musk of perpetrating an “illegal coup” and has called on people to protest against the company’s leadership. Musk has dismissed the protesters, calling them “deranged” and claiming that their opposition stems from his efforts to stop corruption in government.
They basically want to kill me because I’m stopping their fraud, and they want to hurt Tesla because we’re stopping this terrible waste and corruption in the government – Musk told Fox News.
The Cybertruck recall, combined with the growing global protests, has fueled concerns about Tesla’s brand image. Several incidents of vandalism at Tesla showrooms have been reported, contributing to a significant public relations crisis.
These events have taken a toll on Tesla’s stock, which has dropped by a third in the past month.
Investor Concerns Mount Over Brand Damage
Dan Ives, a prominent Tesla supporter and managing director at Wedbush Securities, warned that Tesla is currently facing what he calls a “brand tornado crisis.” In a note to investors, Ives wrote,
The brand damage started off as limited in our view based on our initial survey work … but now has spread globally over the last few weeks into what we would characterise as a brand tornado crisis moment for Musk and Tesla.
Ives emphasized that Tesla and Musk are inseparable :
Tesla and Musk are facing a defining chapter in their future and how Musk handles this next few months will be pivotal to the long-term growth trajectory of Tesla in our view. Tesla is Musk and Musk is Tesla … they are synonymous and attached together and cannot be separated – he wrote.
Ives continued, stressing that Tesla investors are looking for leadership during this turbulent time :
There is one person Tesla investors need to hear from … Musk – he said.
To prevent further damage, Ives urged Musk to clarify how he plans to balance his role as Tesla’s CEO with his involvement in DOGE. Investors are also waiting for a roadmap outlining the release of new, lower-cost vehicles and the rollout of fully self-driving cars in Austin, Texas, scheduled for June.
