It’s been a pretty rough stretch for the electric vehicle giant. While the brand helped Elon Musk rise to the top as the richest man in the world, Tesla’s fortunes have taken a dramatic downturn this year.
Since Musk stepped into a new political position as head of the Department of Government Efficiency (DOGE), he’s been tied up trying to cut $2 trillion from the federal budget. That shift in focus may be costing Tesla big time.
Electric vehicle sales have taken a nosedive, dropping 20% in the last quarter alone. To make matters worse, Tesla’s annual net profits have shrunk by a staggering 71% compared to last year.
Critics and financial experts alike are warning that Musk’s ties to the White House—and his reputation as a Trump ally—have turned Tesla into more of a political lightning rod than an innovative tech brand.
Despite Musk previously setting a bold target of selling 250,000 Cybertrucks a year, the company managed to sell only 6,400 in the first three months of 2025.
Concerns have only grown as high-profile investors, including Musk’s brother Kimbal, are offloading Tesla stock. On top of that, many fear how tariffs under President Donald Trump’s administration might further damage the brand’s future.
That lower-priced model took a big hit in the features department, losing elements like adaptive suspension, the rear lightbar, and even the power outlets in the truck bed.
So far, even with deep discounts and flexible financing, customers still aren’t biting.
According to Business Insider, Tesla is reportedly scaling back Cybertruck production and shifting workers from those lines to focus on building more reliable models like the Model Y.
While Tesla has always leaned into bold design and headline-grabbing reveals, this time it might have missed the mark. These days, buyers are prioritizing dependability, simplicity, and practical design—something a flashy unveiling can’t make up for.
