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by CHRISTOPHER WHITE | The National News Desk
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WASHINGTON (TNND) — Billionaire Elon Musk made huge waves ahead of last year's election when he plowed millions of dollars into President Donald Trump's re-election campaign, eventually dovetailing that into a role helping the president peel back and reshape the federal government. This comes at a difficult time for one of Musk's biggest brands — electric car maker Tesla, which is facing severe headwinds.
Tesla's four top models helped electric vehicles carve out a niche in the larger automotive industry. Models S, X, 3 and Y were once considered cutting edge in the 2010s, but some industry research analysts worry those contributions are starting to look outdated.
That's a view shared by Peter Wells, director of Cardiff University's Center for Automotive Industry Research.
"We've not seen the level of innovation in terms of the product range that perhaps Elon Musk should have been looking for. I think that is a big part of their problem," Wells told BBC recently, referring to Tesla's range per charge. Other analysts point out that Tesla hasn't had a fresh model since the Cybertruck.
Tesla is now recalling 46,000 Cybertrucks following a report from the National Highway Traffic Safety Administration suggesting the vehicle's exterior panels are falling off while driving, causing potential road hazards. Owners can have their rail assembly repaired at no cost.
Larger competitors are now adding to some of the headaches.
Chinese auto manufacturer BYD, for instance, claims it has developed technology that speeds up battery charging to as little as 5 minutes, giving the upstart enough energy for nearly 250 miles of driving. If true, that would be more than half the amount of time it takes for Tesla owners to power up.
BYD's comparatively inexpensive vehicles are available in China as well as Europe. Tariffs are preventing the car company from making any headway into U.S. markets.
Other factors are impacting widespread use for BYD, including Beijing delaying approval for a manufacturing plant in Mexico, citing concerns the automaker's technology might leak into the United States, according to the Financial Times. U.S. officials have long complained about China's alleged technological theft from domestic innovators.
As for Tesla, the year started out bumpy and has only gotten worse. The company saw new registrations fall in Europe by 45% in January, compared to the same month last year.
Germany saw a 30% increase in year-over-year electric vehicle sales last month, but Germans bought fewer Teslas, Sales were down more than 70% compared to last year, according to the European Automobile Manufacturers' Association. Tesla saw similar declines elsewhere.
A survey found 94% of Germans would not buy a Tesla because of Musk. The billionaire's endorsement of Germany's far right Alternative for Germany party turned public opinion strongly against him.
Shipments from China dropped 49% in February —the lowest monthly figure since July 2022, according to Bloomberg.
Meanwhile, violent attacks on properties bearing Tesla's brand are popping up around the country. Showrooms, dealership lots, charging stations and privately owned cars have been targeted. The Associated Press reports there's been an uptick in these assaults since Trump took office and empowered Musk's Department of Government Efficiency to roll back federal agencies.
One woman was charged last month in connection with attacks on Tesla dealerships, including Molotov cocktails thrown at vehicles, while federal agents last week arrested a man that they say set fire to charging stations in South Carolina.
Musk called the violence "insane and deeply wrong" in a post on his X platform earlier this week. He included a video of burning Teslas in Las Vegas in the post, adding: “Tesla just makes electric cars and has done nothing to deserve these evil attacks.”
The mercurial billionaire's work with DOGE and the Trump administration has not gone unnoticed by Tesla's stockholders, some of whom are pressing him to make a choice. Wealth manager Ross Gerber is the first of the carmaker's largest investors to call for Musk to step down as chief executive.
"There are too many important things Tesla's doing, so either Elon should come back to Tesla and be the CEO of Tesla and give up his other jobs, or he should focus on the government and keep doing what he is doing, but find a suitable CEO of Tesla," Gerber told Sky News earlier this week.
Tesla is "absolutely" in crisis mode, Gerber said, adding: "It's time for somebody to run Tesla. The business has been neglected for too long." His comments came after the automaker warned U.S. officials that Trump's trade war with Canada and other countries could have an effect on business.
In a note to White House officials earlier this month, company representatives warned: “As a U.S. manufacturer and exporter, Tesla encourages USTR to consider the downstream impacts of certain proposed actions taken to address unfair trade practices.”
The letter was not signed.
