Electric vehicle manufacturer Tesla is stuck in great trouble these days, where politics, business and the image of the company are all entangled together. This time the company has become the center of trouble, the trade war broke out between the US-China and Tesla’s CEO Allen Musk close to former US President Donald Trump.
Tesla results are coming on Tuesday and Musk will have to face sharp questions from investors. Questions will be, what was the effect of Trump’s 25 percent tariff on Tesla? Musk is now “Department of Government Efficiency” i.e. when will you edge from DOGE? And will the promises of Robotaxi and cheap Tesla models be converted into reality or will we only be in talks?
Large fall in Tesla sales
Tesla sales have seen the biggest decline in the first quarter of this year. This decline has become a matter of concern for investors after continuous double-design growth. Tesla’s shares have been half since December and this series does not seem to stop yet.
Trump’s throat
Now it is double difficult in front of Musk, if he lives close to Trump, then his brand value can be damaged in America and China. At the same time, if they make a distance, then the displeasure of the Trump administration will have to be faced. That is, neither is it becoming spewing, nor swallowing.
In China, Tesla has stopped booking its expensive Model S and Model X, because China has imposed a counter tax of 125 percent. Although these models are small part of the total sales of the company, China is the second largest market for Tesla, from where the company earned $ 20.9 billion in 2024.
Investors seeking answers from Alan Musk
Investors now need a response from Musk whether they will keep distance from the functioning of the government to improve Tesla’s falling brand image? According to a CNN report, thousands of investors on the company’s site have asked such questions, “Has Tesla felt any change in the order rate?” Or “Should Elon now fully focus on Tesla and keep distance from politics?”
Recently, when Musk held a meeting with Tesla employees, the company’s shares had a slight surge, but as soon as the report of the falling sales of the first quarter came, the shares were again in a rage. On the same day, a news came that the MUSK was about to withdraw from the role of the government and the shares climbed. But Musk himself described that news as false.
All promises of Musk, such as Self-Driving Robotaxi, Driverless Ride Service and Human Robots are still incomplete in Austin. At the same time, the Waymo company of Uber and Google has already started driverless taxi service.
Experts believe that if Musk postponed the Robotaxi plan again, it would be very bad news for Tesla’s shares. Because no good news is expected on the financial front. Tesla is currently trapped in a situation where every way is full of risk, maintains a closer with Trump, brand damage, distance if you distance political losses.
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