Tesla’s first-quarter profits have plummeted 71%, sparking protests and investor concerns over Elon Musk’s political shift and growing competition in the EV market, with many questioning his focus on the company’s future.

Tesla has just reported a staggering decline in its first-quarter profits, marking a dramatic 71% drop from last year, leaving the company’s future hanging in the balance. The electric vehicle giant only pulled in $409 million in profits, compared to $1.4 billion during the same period in 2024.

The shocking numbers have sent ripples through Wall Street, with many investors expressing growing concern over the company’s direction, compounded by Musk’s increasingly controversial political stances.

This downturn is part of a larger trend that has seen Tesla’s stock price plummet by nearly 40% since the start of the year, despite some minor recovery after the earnings report.

In response to the dismal results, Musk, who has long been the driving force behind Tesla’s innovation, is facing mounting pressure to refocus on his company.

Tesla’s meteoric rise in the electric vehicle (EV) sector, once a symbol of progressive tech, is now at risk of faltering due to Musk’s recent alignment with right-wing politics.

Musk’s pivot to the right, marked by significant financial support for former President Donald Trump’s campaign and his backing of hard-right political candidates across Europe, has turned off a large portion of Tesla’s customer base.

Historically, Tesla was a favorite among environmentally-conscious consumers, tech enthusiasts, and liberal Americans who believed in the company’s mission to revolutionize the automobile industry.

However, Musk’s political affiliations and public stances have alienated many of these progressive and centrist buyers.

In response to the growing dissatisfaction, protests have erupted at Tesla dealerships, with demonstrators voicing their anger over Musk’s political shift.

The grassroots movement, known as “Tesla Takedown,” has claimed responsibility for the drop in Tesla’s revenue and sales, arguing that the public pressure is starting to take its toll on the company’s bottom line.

“Today’s earnings report sends a very clear message: the Tesla Takedown grassroots pressure is beginning to hit Tesla where it hurts,” the group said in a statement following the release of the earnings report.

Despite the troubling figures, Tesla still maintains its position as the top-selling EV brand in the U.S. and remains the most valuable automaker globally by market capitalization.

However, the company’s dominance is increasingly threatened by growing competition, both from international brands and American rivals.

Chinese EV manufacturers like BYD, XPeng, NIO, and Zeekr have significantly improved their vehicles’ battery capacity and interior technology, leaving Tesla’s offerings looking increasingly outdated. For example, BYD recently introduced a car that charges its battery in a third of the time that a Tesla requires.

American competitors are also closing the gap. Rivian, a notable newcomer to the EV market, now offers vehicles with a driving range that surpasses Tesla’s by nearly 100 miles. Hyundai and Kia have also emerged as serious contenders, providing lower-priced models that undercut Tesla’s popular Model Y.

Even General Motors (GM), a legacy automaker, has ramped up its electric vehicle offerings, including the new $35,000 Chevy Equinox EV, which appeals to a broader market looking for an affordable alternative to Tesla’s higher-end vehicles.

In addition to stiff competition, Tesla’s earnings report also cited the impact of shifting trade policies and a shaky global supply chain, which have hindered the company’s ability to maintain its production levels and profitability.

Despite the setbacks, Musk remains optimistic about Tesla’s long-term prospects, pointing to the company’s investments in autonomous vehicle technology and robotics as the key to future growth.

Tesla’s upcoming developments include autonomous cars that Musk believes will redefine the transportation industry, along with affordable EVs that are set to enter production in the first half of 2025.

While the company is optimistic about its future, some key promises have begun to unravel. Musk had previously promised a $25,000 electric vehicle, which would make EVs more accessible to the general public.

However, the company has now tempered those expectations, calling the plans “pointless” and “silly” as Musk reconsiders the viability of such a vehicle due to the rising costs of materials and supply chain constraints.

Furthermore, Tesla has warned that its upcoming affordable vehicles will feature fewer cost reductions than originally planned, pushing back the timeline for delivering these products.

The situation is becoming increasingly tense as Musk attempts to juggle his political ventures, his role as CEO of Tesla, and his other ambitious projects, including his ownership of Twitter and plans for space exploration through SpaceX.

As Tesla’s sales struggle and public protests continue to mount, investors are beginning to question whether Musk can maintain his focus on the company that made him a billionaire.

While Tesla’s current market share and profitability remain impressive in the broader context of the global auto industry, the company’s future is far from guaranteed.

The growing competition in the EV space, combined with the fallout from Musk’s political pivot, suggests that the electric car revolution could face a major shift in the years to come.

Musk’s ability to navigate these challenges will likely determine whether Tesla can remain at the forefront of the EV market or become a casualty of its founder’s shifting priorities and the changing dynamics of global politics.

The anti-Musk movement, driven by both political discontent and growing frustration with the company’s stagnation, could very well continue to shape the next chapter in Tesla’s story.