
Elon Musk's return to Tesla's helm was supposed to be a lifeline for the electric vehicle giant, but the company's troubles are far from over. After a bruising first quarter in 2025, with sales plummeting 13% and net income crashing 71%, Tesla is grappling with a crisis tied to Musk's polarizing political moves.
His high-profile role at the Department of Government Efficiency (DOGE) and outspoken support for far-right causes have sparked protests, vandalism, and boycotts, tarnishing Tesla's once-shining brand. As Musk pledges to refocus on Tesla, analysts warn the damage, especially from the DOGE era may be permanent.