Asger Risom
While there’s no indication Tesla is closing down, Tesla faces plunging sales and mounting controversies surrounding CEO Elon Musk, fears are rising among investors and vehicle owners.
While there’s no indication Tesla is closing down, Tesla faces plunging sales and mounting controversies surrounding CEO Elon Musk, fears are rising among investors and vehicle owners.
Sales Slump Sparks Concern
Tesla’s Q1 2025 delivery numbers dropped to just 336,681 units—the lowest in nearly three years. Combined with a 45% drop in market value since December 2024, this has triggered alarm among shareholders and customers alike.
Elon Musk’s Politics Stir Backlash
Musk’s public support for Donald Trump and European right-wing parties has led to widespread protests and vandalism at Tesla stores. Many owners now openly distance themselves from the CEO, even sporting “Elon Sucks” stickers.
Could Tesla Leave Certain Markets?
An analysis from Auto Motor und Sport suggests Tesla may consider exiting underperforming countries. Persistently low sales across Europe have intensified speculation about a scaled-back presence.
Service and Spare Parts at Risk
If Tesla exits a country, access to its closed service network would be disrupted. Independent garages may take time to catch up in terms of parts availability and technical expertise.
Software and Support Could Disappear
Tesla vehicles rely heavily on over-the-air updates. A regional withdrawal could mean reduced software functionality over time. Warranty coverage and customer support may also end abruptly.
A Global Collapse Would Be Far Worse
Though unlikely, a total brand collapse would devastate owners. Resale values would plummet, spare parts production would likely halt, and many app-based features could become inoperable if Tesla shuts down its servers.
Trade Wars Compound Tesla’s Troubles
Tesla is directly affected by new U.S.-China tariffs. China has halted sales of the U.S.-made Model S and X due to a 125% import duty. Local production of Model 3 and Y continues for now.
New Models Struggle to Impress
Tesla’s much-hyped Cybertruck has failed to meet expectations, and a rumored budget model for 2025 remains largely undefined. Musk has also stopped sharing specific growth targets.
Tesla Not Closing Yet—But Risks Remain
Despite dramatic headlines, there’s no confirmation Tesla is shutting down. Still, with record-low sales and geopolitical hurdles, Tesla owners should stay alert to potential risks in certain markets.
