Home / USA News / Tesla’s Toughest Moment Yet: Elon Musk’s Political Drama Distracts From EV Struggles as Sales, Support, and Stability Slip

Tesla’s Toughest Moment Yet: Elon Musk’s Political Drama Distracts From EV Struggles as Sales, Support, and Stability Slip

Tesla robotaxi news

Tesla robotaxi news may be all over the internet right now, but what’s happening behind the scenes is even more serious. As Elon Musk clashes with Donald Trump and dives deeper into politics, Tesla’s real challenges — crashing EV sales, vanishing government incentives, and delays in robotaxi technology — are piling up fast.

Behind the social media sparring and political drama, Tesla is quietly slipping into a crisis. Sales are down, government support is drying up, and investors are growing uneasy. And now, the man behind it all — Elon Musk — seems more focused on launching a new political party than fixing his company’s growing list of problems Tesla robotaxi news.

Musk vs. Trump: Friends-Turned-Foes in a Very Public Meltdown Tesla robotaxi news

Not long ago, Elon Musk and Donald Trump were practically inseparable in political circles. Musk backed Trump during the 2024 election and was a regular face at Mar-a-Lago and even at the White House. He was so close to the administration that he helped lead a government downsizing effort Tesla robotaxi news.

But last week, that bromance came to a screeching halt.

Tesla robotaxi news

After Trump signed a controversial tax and spending bill, Musk—clearly unhappy—announced he was forming his own political party. Since then, both sides have been taking shots at each other online. It’s gotten petty, it’s gotten loud… and Tesla shareholders aren’t thrilled Tesla robotaxi news

The stock dropped nearly 7% in a day. Why? Because investors know exactly what this means: Musk is once again chasing distractions when the company desperately needs him focused Tesla robotaxi news.

The Real Problem? Tesla Might Start Losing Money Again

While all the political noise is buzzing online, the real issue is buried deeper in the numbers.

That same bill Trump signed? It killed the $7,500 tax credit for electric vehicles. For Tesla, that’s a huge blow. It’s what made their cars more affordable for everyday buyers. But that’s not all — the bill also removed emissions fines that used to force traditional automakers to buy emissions credits from EV companies like Tesla.

Those credits weren’t just bonus cash — they were crucial to Tesla’s profitability.

Tesla robotaxi news

To put it plainly: without that money, Tesla wouldn’t have shown a full-year profit until 2021. And according to analysts, they’d already be back in the red if those credits weren’t still helping cover the gap in early 2025 Tesla robotaxi news.

Robotaxis Were Supposed to Save the Day… But They’re Still Not Ready

Elon Musk has repeatedly said the future of Tesla lies in automation, AI, and self-driving taxis. It sounds great — but the reality isn’t quite there yet Tesla robotaxi news

Right now, Tesla’s robotaxi program only operates in Austin, Texas, and even then, it’s barely public. Only a select few people are allowed to try it, and a Tesla employee still has to sit in the passenger seat just in case something goes wrong Tesla robotaxi news.

And yes, things have gone wrong.

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One video shows a Tesla robotaxi driving on the wrong side of the road for an entire block. Another shows the car turning straight toward a parked vehicle. That’s not the cutting-edge tech people were expecting.

Meanwhile, Waymo (owned by Google) is quietly racing ahead — operating fully driverless taxis in four cities and expanding soon to Miami and Washington, D.C.

Tesla robotaxi news

Sales Are Sinking. Competition Is Rising. And Musk Is Now a Political Target.

Let’s talk about Tesla’s core business: selling cars.

In the first two quarters of this year, Tesla’s global sales dropped a record 13% — even though the EV market as a whole is still growing. That means one thing: people are choosing other EV brands over Tesla.

Why? Two big reasons:

  1. More choices – Traditional carmakers are finally getting serious about electric vehicles. People now have options.
  2. BYD from China – They’re closing in fast and might outsell Tesla globally this year. That’s a big deal.

Oh, and let’s not forget: the EV tax credit officially ends on October 1. Last time that happened in 2019, Tesla had to slash prices. So yes, more price cuts could be on the way — which isn’t great news for profits.

The Musk Effect: From Genius CEO to Political Hot Potato

Tesla robotaxi news

It’s no secret that Elon Musk is a polarizing figure. But now, his political antics are actively hurting the brand.

Earlier this year, protests popped up outside Tesla showrooms across the U.S., Canada, and Europe. People were angry about Musk’s politics, and it showed.

To make up for the negative press, Trump (back when he and Musk were still friendly) even announced he was buying a Tesla and encouraged others to do the same. For a brief moment, it looked like Tesla might balance out the backlash from the left with support from the right.

But now? Musk is fighting both sides. He’s lost Trump supporters and critics alike — a rare and dangerous position to be in for any brand.

The buzz around Tesla robotaxi news continues to grow as fans and critics alike search for updates on the robotaxi Tesla release date, rumored to arrive in late 2025. While pricing hasn’t been officially confirmed, early reports suggest that the Tesla robotaxi price could be lower than traditional ride-hailing services, making it a game-changer in the autonomous driving space. However, the rollout hasn’t been without issues — at least one Tesla robotaxi accident was caught on camera, raising safety concerns. Tesla is expected to launch a dedicated Tesla robotaxi app, giving users the ability to schedule rides, track cars, and manage payments all in one place. When comparing Tesla robotaxi vs Waymo, many point out that Waymo is already operating fully autonomous services in several cities, whereas Tesla’s program is still in early testing. Over on Tesla robotaxi Reddit threads, discussion is heating up around leaked videos, safety issues, and pricing predictions. One Tesla robotaxi video even shows a near-miss with a parked car, while another highlights smooth navigation — offering a mixed picture of progress. For those eager to try it first, Tesla robotaxi sign up options may soon become available through Tesla’s website or app, especially as the service expands beyond Austin.

So… What Now?

Tesla isn’t doomed. But it is at a turning point.

The robotaxi rollout could still turn things around — if it actually works. Global sales could rebound — if Musk stops scaring off customers and investors. And the company could weather the loss of government credits — if they innovate fast enough.

But none of that will happen if Elon Musk is busy starting a political party and trading insults with Trump on the internet.

Investors know this. Customers sense it. And competitors are capitalizing on it.

Tesla needs its CEO back — not as a politician, not as a provocateur — but as a focused, visionary leader who builds cars and shapes the future.

If Musk can’t make that pivot, then Tesla’s glory days may be behind it.

These days, traditional media is stumbling across the board and people have more avenues than ever to amplify their own ideas and content. So it can be easy to fall into a trap of getting your “news” from Instagram and YouTube and TikTok. 

This is less me seething that InsideEVs wasn’t “invited” to do the test—I actually plan to get us down there and try it as soon as possible—but more to raise a point about how Tesla gets its message across the world and who you can really trust. Granted, Tesla has been doing this sort of thing for a while, like the We, Robot event last year that included insiders, investors and superfans. 

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