May is underway, and Tesla (TSLA) CEO Elon Musk has signaled that he’s gearing up for a significant return to Tesla’s day-to-day operations starting this month. During the Q1 earnings call, Musk announced that he will scale back his involvement with the Department of Government Efficiency (DOGE), promising to make Tesla his top priority once again. Still, analysts warned that Musk’s increased presence alone may not be enough to reverse the lasting reputational damage caused by his controversial political activities and public statements, which have sparked widespread protests, boycotts, and vandalism targeting Tesla showrooms.
For example, Tesla’s struggles in Europe have reached critical levels, with experts calling it a “death spiral” in the company’s European sales. Recent data from key markets such as Germany, the United Kingdom, and Sweden show Tesla’s sales falling dramatically, even as overall European EV sales continue to grow. With Musk vowing to refocus on the automaker, many investors wonder: Can his comeback stem the tide, or is the damage already irreversible?
