It is going from bad to worse for electric-car maker Tesla headed by Elon Musk.

So far this month, Tesla’s worldwide sales are down 33 per cent and its stock price continues to tumble. In Germany, Europe’s largest car market, Tesla sales slumped by 70 per cent in January and February.

Why the precipitous fall? 

Some say there is a backlash against Elon Musk as people across the world take umbrage with his association with US President Donald Trump. In the United States, there are reports of arson at Tesla showrooms.

Europe is turning away from Tesla and embracing Chinese electric vehicle company BYD.

It is getting worrisome and there is a call for Musk to focus on getting Tesla back on track instead of spending his time trying to fix US Government agencies.

Last week, US Commerce Secretary Howard Lutnick went on Fox News and beseeched Americans to buy Tesla stock as it is a great company and the share price will never be this low again.

Tesla’s share price has plummeted 53 per cent since the beginning of 2025.

The market value of Tesla has fallen from US$770 billion to US$635 billion, leaving a more than US$100 billion hole in Musk’s pocket.

The imposition of tariffs and the on-going trade wars will further hurt Tesla’s sales across the world.

Tesla was once the darling of the electric vehicle trend but competitors are now stalking it. Developing countries are increasingly turning to Chinese-made vehicles. There is talk now that Tesla vehicle prices are overinflated.

What Tesla is now witnessing is its sales are falling while the electric vehicle market is growing. Musk’s political rhetoric is certainly not helping. Musk’s persona and charisma were Tesla’s calling card in its earlier years.

Last week, a major Tesla investor, Ross Gerber, called on the board to get rid of Musk as CEO of the company as its share price continues to head south.

“Why has the board of directors sat quietly while so much brand value has been eroded to the point that cars are being set on fire? It’s been wildly negligent that the board has done nothing to curb Elon’s behaviour, especially around extremist statements.”

Tesla’s share price was US$475 before Christmas, now it has dropped to US$240.

Addressing Tesla staff, Musk said: “If you read the news, it feels like Armageddon. I understand if you don’t want to buy our product, but you don’t have to burn it down. That’s a bit unreasonable.

“What I’m saying is hang on to your stock. There are times when there are rocky moments. But what I am here to tell you is that the future is incredibly bright and exciting and we’re going to do things that no one has even dreamed of.”