Tesla's Updates on July 25: Model Y Versions Announced, Elon Musk Protests, Supercharger Security Measures, BYD Joins Rally Event
In the world of electric vehicles (EVs), Tesla continues to make headlines, but not all of them are positive. The company, led by CEO Elon Musk, has been facing a series of challenges, including political controversies, declining sales, and competition from rivals.
Tesla's Stock Takes a Dip
Tesla's stock price reached its highest level since July 2022 in local currency mid-week in January 2025, but it has since lost about 12% since the beginning of the year. This drop could be attributed to various factors, including the company's financial performance and the ongoing political controversies surrounding Musk.
Sales Slump in the U.S. and Europe
Tesla sold fewer electric vehicles in January 2025 compared to the same month in the previous year, both in the U.S. and Europe. The refreshed Tesla Model Y, expected to be delivered earlier than initially scheduled, is currently only available in a single "Launch Series" with a larger battery and all-wheel drive in Europe and the U.S. The seven-seater option, introduced in Europe in October 2024, is not available for the Launch Series.
Political Controversies Impact Brand Popularity
Elon Musk's political involvement, particularly his shift toward right-wing politics and controversial public behavior, has negatively impacted Tesla's brand popularity. Surveys and studies indicate that liberal-leaning Americans have become significantly less likely to purchase Teslas or other EVs because of their unfavorable perceptions of Musk and his political views. This backlash has contributed to protests against Tesla, damage to the brand's reputation, and a decline in customer loyalty and sales.
Competition from Rivals
Meanwhile, Chinese EV manufacturer BYD managed to maintain a loss of only 3.2% to around 200,000 "New Energy Vehicles" in China in January 2025, while Tesla sold about 15% fewer electric vehicles compared to the same month in the previous year. BYD's stock price reached its highest level since July 2022 in local currency mid-week in January 2025.
Tesla's Upgrades and Future Plans
Despite the challenges, Tesla is not standing still. The company plans to reintroduce the third row in the updated Model Y before the end of this year. Tesla's Supercharger technology has made technical advances, enabling V4 charging pillars to deliver up to 500 kilowatts of power. Tesla is also testing protection for Superchargers, including special fuses and cable protection that is difficult to cut and releases a blue liquid inside.
However, calls for protests outside Tesla locations worldwide have been circulating on the social media platform BlueSky, reflecting the ongoing political and public backlash against the company.
In China, the Model Y is only available in the updated form with the "Launch Series" designation, but unlike in the West, it is also available in the base version.
Trump's Impact on EV Incentives
Trump ally Donald Trump is expected to cut various electric vehicle incentives in the U.S., which could further impact Tesla's sales in the region.
In conclusion, Tesla is facing a complex set of challenges, including political controversies, declining sales, and competition from rivals. However, the company is not standing still and continues to innovate and develop new technologies. Whether these efforts will be enough to turn the tide remains to be seen.
- The financial implications of Tesla's challenges extend beyond the company's stock, as the decline in sales in both the U.S. and Europe has an impact on their revenue.
- The ongoing political controversies surrounding Tesla's CEO, Elon Musk, not only affect the company's stock but also influence consumer perceptions about the brand, particularly among liberal-leaning individuals.
- In the realm of business and technology, competition from rivals like BYD, especially in the EV market in China, is another factor contributing to the difficulties faced by Tesla.
