Musk ran into Trump at Tesla

The isolationism promoted by the Trump Administration - America, first and foremost -, the idea that democracies lead to too slow development and that society should be run like a company with a single shareholder give way to voluntarism and dictatorship, as a by-product. In this case, we are dealing with Donald Trump's desire to make whatever decisions he wants, without consulting with social partners or anyone else, decisions for which he will not be held accountable later, as happens in a company where you are a 100% shareholder. Elon Musk's attachment to such a conception has sparked commercial reactions, although the echo is political. And these commercial reactions have materialized, since December 2024, in the drastic decrease in both Tesla car sales and the value of Musk's company shares, which lost the increase of $ 800 billion (in the market value of the automaker) recorded on December 17, 2024, according to CNBC.com. Another television station, NBC.com, stated on February 25, 2025, that, since mid-December, the net worth of the technological titan has decreased by more than $ 100 billion. The most significant loss was recorded on March 11, 2025, when Tesla's market value decreased by $ 127 billion in a single day, according to Bloomberg.

In addition to the commercial reactions, we have also witnessed the vandalism of Tesla cars, on the body of which obscene messages addressed to Elon Musk appeared, as well as the Nazi swastika sign, for his stances regarding the parliamentary elections that took place on February 23, in Germany. Therefore, the experts cited by the American television channel CNBC believe that Tesla is facing an erosion of the brand, due to Musk's incendiary political rhetoric and his involvement in the Trump Administration, where he heads the so-called Department for Government Efficiency.

Musk, the richest person in the world, has become the public face of the administration's effort to dramatically reduce the workforce, spending and capacity of the federal government. Meanwhile, Musk has used X to make accusations against judges whose decisions he did not like and has promoted false Kremlin talk about Ukrainian President Volodymyr Zelensky. Activists and former Musk fans have protested at Tesla locations across the U.S., and Tesla vehicles and facilities have been the apparent targets of vandalism and arson. Repeated arson attempts and vandalism have occurred at a Tesla store and service center in Loveland, Colorado, most recently on March 7, police told CNBC. Ben Kallo, an analyst at Baird, told CNBC that the recent reports of vandalism could hurt demand.

"When people's cars are at risk of being vandalized or set on fire, even people who support Musk or are indifferent to Musk might think twice about buying a Tesla," Kallo said.

• Sales and shares plunge; global boycott of Tesla?

The situation is clearer in Europe, where, since January 2025, when he openly expressed his option for the AfD (Alternative for Germany) and Alice Weidel, with whom he conducted an extensive interview broadcast live on the X network, Tesla car sales have been steadily declining.

According to the American financial exchange and prediction market Kalshi, cited by Electrek, Tesla will deliver 359,000 units in the first three months of 2025, compared to 386,810 in the first quarter of 2024, and 495,570 in the last three months of last year,

Tesla sales have fallen by 71% in Germany this year, by 45% in Norway, by 44% in France and by 44% in Spain, according to data reported by Electrek, cited by Axios. At the end of January, the number of Tesla cars purchased by Germans was 54% lower than in January 2024. The decline in Germany is particularly significant because Germany has the largest electric vehicle market in Europe and is a country where Musk has been aggressively involved in national politics. Ahead of Germany's February elections, Musk campaigned for the far-right Alternative for Germany party and said at an online event that the country was "too focused on past guilt."

According to Constantin Gall, an analyst at EY, who confirms the data from the European Automobile Manufacturers Association (ACEA), Tesla is seeing declines in most European countries. For example, the company's sales fell by about 70% in Austria and Switzerland, and by 54% in Italy and Belgium.

Tesla also saw sales in China fall by 49% in February compared to the same period in 2024, which was electric car industry insiders say this is most likely due to increased competition from cheaper Chinese rivals. Data released by the China Passenger Car Association (CPCA) shows that Tesla sold just 30,688 vehicles in China in February, down from 60,365 in the same period last year. This is a significant drop, given that the Chinese market for electric and hybrid vehicles grew by 82%. Tesla's sales in Australia fell by almost 72% in February. Tesla sold just 1,592 vehicles in Australia last month, compared to 5,665 sold in the same month last year, according to mashable.com.

According to data recently presented by the Association of Automobile Manufacturers and Importers in our country, in Romania, in February 2025, the registration of electric cars recorded a decrease of -34.8%, compared to February 2024. According to the press release sent to the Editorial Office by APIA, Tesla recorded a decrease of -78.9% in February 2025, compared to February 2024; that is, last month only 181 Tesla cars were registered in our country, compared to 859 in February last year.

This was reflected on the stock market, where Elon Musk suffered significant financial losses, following the decline in Tesla shares. According to expert Daniel Sparks, quoted by Yahoo Financial, yesterday, the value of Tesla shares was about 39% lower than at the beginning of 2025. He shows that Tesla car sales have been falling since 2024, compared to 2023, but not as drastically as in the first months of 2025. Daniel Sparks stated, for the cited source: "Revenue from the company's automotive segment fell by 6% in 2024 compared to the previous year, which led to an overall revenue growth of only 1% during the year. But the situation becomes even more difficult. Net profit for this period fell by 53% compared to the previous year, and cash flow decreased by 18%. However, not all Tesla segments are negatively affected. Tesla's power generation and storage segment saw revenue growth of 67% year-over-year, driven by strong sales of its energy storage products for homes and utilities. Growth in this segment accelerated further in the fourth quarter of 2024, reaching 113%. However, at about 10% of total revenue, this segment remains small compared to Tesla's core business. Therefore, weakness in the automotive sector is having a major impact on the company's overall performance." Tesla shares have fallen 50% since their record high last December, but they are not yet cheap enough for Ross Gerber, CEO of Gerber Kawasaki Wealth & Investment Management, to buy, Business Insider writes. Gerber - who became an investor in Tesla years ago, buying shares before they skyrocketed - said last month that he expects the stock to fall as much as 50% this year as Elon Musk focuses on other initiatives, including DOGE, SpaceX, xAI and X. Now, Gerber has an even more negative outlook for Tesla and doesn't see the stock recovering this year, even after recent losses. Gerber Kawasaki Wealth & Investment Management has cut its Tesla investment by 31% in 2024, leaving it with 262,000 shares of the automaker, which were valued at $106 million at the end of last year.

• Trump Firefighter tries to put out Tesla fire

In a desperate attempt to stem the decline in Tesla's stock price, Donald Trump has come to the aid of his White House adviser, announcing on his Truth Social network that he will purchase a car from the company run by Elon Musk. Trump made the announcement by emphasizing that Musk is a "truly extraordinary American" and condemning the boycott against Tesla initiated by political opponents. And the next day, Trump presented a red Tesla Model S on the White House lawn for which he paid almost $ 80,000. The American president said that he would leave the car at the White House for his staff to use. In addition to the car in question, four other cars from Elon Musk's company were displayed on the White House lawn.

The purchase of the car was preceded by information that emerged a month ago, according to which the company Tesla would supply several armored electric cars for the US Presidential Administration. At the time, there were accusations from Democrats, who stated that, in this case, there was a conflict of interest, given that Elon Musk, in addition to being an advisor to President Trump, is also the coordinator of the Department for Government Efficiency (DOGE).

Given the above situation, plus the trade war launched by the Washington Administration, including with the European Union, the EU's electric mobility ambition seems to be receding. In this context, at the beginning of March, the authorities in Beijing declared that China wants to reach a trade partnership with the European Union. And Chinese electric cars are much cheaper than the cheap ones produced by Tesla, even if they are not as reliable.

• Chinese electric cars - an alternative for the European market?

According to the Financial Times and The Guardian, Chinese electric car production has experienced remarkable growth in recent years, consolidating its position as the world leader in this sector. In 2024, China accounted for approximately 58% of global electric vehicle production, with domestic sales of 12.87 million units, of which 60% were battery electric vehicles (BEV) and 40% plug-in hybrid vehicles (PHEV). This rapid expansion has been supported by a comprehensive government strategy that has included subsidies, the development of charging infrastructure and the promotion of technological innovation. Companies such as BYD and CATL have benefited from a vast pool of talent in software engineering and technology startups, which has given them a significant competitive advantage, according to the French daily Le Monde.

So, with Tesla's sales declining and former US President Donald Trump threatening to increase trade tariffs on imports, the European market is facing major challenges. European manufacturers such as Volkswagen and Stellantis are facing a decline in demand and fierce competition from Chinese manufacturers, which offer high-quality electric vehicles at competitive prices. Analysts at the Financial Times say that to counter these challenges, European manufacturers are exploring partnerships with Chinese firms to access advanced technologies and diversify their production capacities. For example, Volkswagen has partnered with Xpeng, and Stellantis has collaborated with Leapmotor, in an attempt to remain competitive in the global market.

Therefore, Chinese electric car production represents a viable alternative for the European market, offering affordable vehicles and advanced technologies. To face this competition, European manufacturers should adopt innovative strategies and invest in technological development, ensuring that they can meet the growing demand for electric vehicles, say experts contacted by the cited sources.

Especially since European manufacturers are also benefiting from a moment of respite regarding electric mobility, after the European Commission recently presented a new plan aimed at supporting the automotive industry in global competition. Instead of monitoring and penalizing manufacturers who fail to meet CO2 emission reduction standards, the European Union decided to postpone the application of sanctions until 2027. This "breathing period" was a victory for the auto industry, which had already managed to postpone the implementation of stricter environmental standards in the past.

Norbert Ligterink, an expert in vehicle emissions and air quality who was involved in the development of the new Euro 7 regulations, which are designed to set stricter limits on vehicle emissions, told Follow the Money that, despite the postponement approved by the European Commission, he does not believe that Euro 7 will bring significant improvements.

"I do not think cars will become cleaner," said Norbert Ligterink.

However, Euro 7 introduces new rules on the durability of electric and hybrid vehicle batteries, as well as limits on particulates generated by tire and brake wear. Initially, the European Commission wanted these rules to enter into force on 1 July 2025, but, under pressure from member states and the automotive industry, the implementation was postponed, so that member states can implement the directive between 2026 and 2031.

If Tesla's decline on the European market continues until the end of 2025, given that the increase in electric vehicle registrations in Europe shows that interest in this segment is growing, then it becomes clear to car manufacturers on the old continent that they need a credible partner, which Elon Musk does not seem to be at the moment.