Tesla’s real struggles have only just begun

Tesla used to be the envy of the automotive world, with high reviews in the sky, an unavoidable focus on technology, and an executive president that led to unprecedented loyalty from his customers.

Now the company’s reputation is in a state of chaos, and its financial future appears increasingly dark, and it is unlikely that the fruits of its stakes charged with artificial intelligence and robots anytime will come soon. Strangely, CEO Elon Musk only has a “wake up” to the installation crisis on the doorstep. This is according to what a “former executive director in Tesla”, who said Financial times Musk has not now reconciled with the damage created by his political activities to Tesla.

It seems that the passage of President Donald Trump “the beautiful draft law” that was the last straw of Moussak, who strongly opposed the bill, described it as “abomination” on the basis that he would suffer from the national deficit. The draft law, which Trump has signed during the weekend, will remove the tax credits to buy EV, and zero fines for auto manufacturers that exceed fuel efficiency targets, and other incentives for wind and solar energy.

Musk was steam on the passage of the draft law, declaring its intention to establish a third political party. But it will be bore the burden of the bill.

The CEO told Times. “This is not only [the EPA’s CAFE standards] In a vacuum – it’s everything together: customs tariffs, consumer credit of $ 7500, manufacturing tax credits, assets, and solar residential credits … Elon finally woke up, but he talked about a late and short day in dollars. “

Tesla will lose billions of dollars in organizational credit sales as a result of the bill on sanctions on car manufacturers who exceed emissions standards. In the first quarter of 2025, the company had reported a loss if not credit sales, which increased by 35 percent year on year to $ 595 million, Times Notes. The company is now scrambling to support organizational credit sales in Europe and other places to calculate the loss in the United States.

You have to feel sorry for the Tesla Bulls in Wall Street, who was only celebrating last week with a slightly unexpected production and delivery report (only 14 percent sales decreased, this is not very bad!), Only to run Smack-Dab in the Musk advertisement for America. Tesla shares decreased by 7 percent in early trading on other political cavity news in Musk.

“After leaving the Trump and Doug administration, there was a preliminary relief from Tesla shareholders and major supporters of the name that Tesla just recovered is greater than its assets, Musk.” “This relief has lasted very short and is now worse with this last announcement.”

Keep in mind that the sales of Tesla were already decreased, thanks to the lustle of the Musk side with DOGE. However, the company’s financial resources have been kept on its feet through organizational credits – which will now disappear with a strike from the Trump pen.

Meanwhile, Musk spit with Trump only accelerated the brand crisis in Tesla. Democrats, who were once the owners of Tesla and supporters of the company’s environmental mission, were already tension on the brand as Musk approached Trump. Now that he is outside with the president, the company’s reputation is decreased among Republicans. Who asks the question: Who will leave to buy Tesla cars?

As usual, the Tesla Council was silent on all these points. As investors continued to be the CEO’s attention from gentle attention, the Council did not exactly to reduce Musk’s activities. The President of Tesla Robin Dunholm strongly denied a Wall Street Journal A report from this year earlier that the CEO research replaced musk was underway. If the company begins to record quarterly losses, we must expect those rumors to appear again.

The musk itself appears to be on an increasing land. Trump threatened revenge against him by canceling the profitable government contracts with Spacex and Starlink. He has even suggested that he would be open to the deportation of musk – although it remains on a legal basis.

Investors assumed that Tesla was in a better position than other car manufacturers to overcome the upcoming difficult roads, after Trump’s victory showed that EV incentives and credit sales would be on the cutting block. They did not expect the speed of the alliance between the two famous mercury people.