Elon Musk, once revered as a tech visionary, now appears to be more interested in playing a far-right meme than delivering on his promises of self-driving cars and putting men on Mars. His latest antics—wielding a chainsaw on stage at the Conservative Political Action Conference (CPAC) while rambling incoherently about comedy, gold reserves, and government efficiency—is another one of those instances where his transformation from once an entrepreneur to now an erratic sideshow was on full display.
But while Musk indulges in political theater and self-aggrandizing quips, Tesla is experiencing an unprecedented slump in both sales and stock value.
The Spectacle Over Substance
Musk’s bizarre CPAC appearance quickly overshadowed whatever message he had hoped to convey. Dressed in sunglasses, a gold chain, and a t-shirt proclaiming, “I’m not procrastinating, I’m doing side quests,” he paraded on stage, chainsaw in hand, gifted to him by Argentinian President Javier Milei. Musk’s disjointed statements—such as declaring, “I am become meme,” and pondering whether Fort Knox’s gold was real—left viewers bewildered.
Even supporters struggled to defend his erratic performance, as the phrase “Ketamine” trended on X (formerly Twitter), referencing his previously admitted use of the drug. Meanwhile, his ex-girlfriend Grimes publicly pleaded for him to contact her regarding an urgent health emergency concerning one of their children.
His chaotic behavior, now a recurring theme, is more than just a PR disaster—it’s having tangible effects on Tesla’s financial health.
Tesla’s Crashing Sales and Market Cap Decline
Tesla’s global sales are plummeting at an alarming rate. In California, a long-time stronghold for Tesla, sales dropped by 11.6% in 2024, with nearly 30,000 fewer Model 3 registrations. While Tesla remains a market leader, the downward trajectory is undeniable.
The situation is even more dire in Europe. In Germany, Tesla sales declined by a staggering 60% in January 2025. In France, the drop was even worse at 63%. Even the UK, where EV sales overall increased, saw an 8% decline in Tesla purchases. China, the largest market for EVs, also reported an 11.5% decrease in Tesla sales, despite the company’s significant investment in its Gigafactory in Shanghai.
A key driver of Tesla’s declining sales is Musk himself. His vocal alignment with far-right politics and controversial policy decisions, including his leadership of Trump’s so-called Department of Government Efficiency (DOGE), have alienated Tesla’s core customer base—wealthy, progressive, urban EV buyers. As Tesla loses support from this demographic, it has yet to gain meaningful traction among Musk’s newfound conservative fanbase, many of whom remain skeptical of EVs.
Stock Plunge: The Market Has Had Enough
Tesla’s stock has taken a nosedive, dropping over 25% in early 2025. The once-iconic EV maker, whose market cap soared past $1 trillion, has now slipped below that milestone. Musk’s entanglement in political controversies, along with lackluster updates to Tesla’s product lineup, has eroded investor confidence. Even Tesla’s much-anticipated software upgrade for its partially automated driving system in China failed to impress, further dampening enthusiasm for the brand.
Compounding these issues, Tesla’s earnings report for Q4 2024 showed an 8% drop in automotive revenue and a 23% decline in operating income. The long-dominant EV maker now faces mounting pressure from competitors like BYD, Rivian, and legacy automakers that have ramped up their EV offerings.
The Ultimate Question: Can Tesla Recover?
With Tesla’s financial outlook growing increasingly grim, Musk’s erratic behavior is no longer just a distraction—it’s a liability. His willingness to prioritize political theatrics over corporate strategy is actively driving customers and investors away. While Tesla’s upcoming Model Y refresh might provide a temporary sales boost, the company’s long-term prospects are uncertain as long as Musk remains more focused on internet memes and conservative rallies than on delivering reliable, competitive EVs.
For years, Musk has cultivated an image of himself as a visionary genius. But as Tesla’s stock and sales continue their downward spiral, it appears that fewer people are willing to buy into the performance.
Source: CNBC, Inside EVs.