TESLA
Tesla is the world’s best known electric vehicle manufacturer, headed by the world’s richest man, CEO Elon Musk. The company has played a significant role in the evolution of the car industry, challenging many of the world’s long established carmakers. In 2025 Tesla aims to expand its EV lead and reach a broader market. The go ahead for its full self-driving technology and launch of the Robotaxi are among the main goals. However, Musk and Tesla have faced challenges this year, partly due to Musk’s political engagement.
- TESLA IN 2024
In 2024 the EV producer achieved numerous milestones, underpinning its stock price. The company delivered a record number of EVs in 2024, regularly beating market expectations. The company also expanded its manufacturing, with the opening of new Gigafactories in locations in Europe and plans for India. Gigafactories in other countries like Mexico are expected to cater to the American market. Progress was made in developing its self-driving technology.
- CEO ELON MUSK: POLITICAL ENGAGEMENT AND MARKET RESPONSE
Elon Musk became active in the U.S. presidential campaign, a move that drew media attention. Traditional thinking suggested this might alienate potential Tesla buyers. But Tesla’s stock price surged 70% in the month before President Trump was elected in November 2024. Under Trump’s Republicans, Tesla expected corporate tax cuts and looser regulatory rules. Elon Musk was given an official role for the US government heading DOGE, an advisory department to cut government waste. In the early days of Trump’s administration Tesla’s stock price was still rising.
- TESLA IN 2025: CHALLENGES AMID CONSUMER PUSHBACK
Tesla’s earnings in 2025 have disappointed traders, although Musk announced that the Cybercab, a self-driving taxi, will go into production in 2026. In April quarterly figures showed declining deliveries. Musk’s DOGE role and political commentary led to consumer backlash in some markets. Some European and North American consumers initiated boycotts of Tesla products. Reports of vandalism targeting Tesla vehicles emerged, raising brand perception concerns.
- TESLA IN 2025: MUSK EXITS FONTLINE POLITICS TO FULLY FOCUS ON CAR MAKER
Tesla CEO Musk exited his role at DOGE at the end of May. Musk acknowledged that his White House role had attracted some bad publicity and stated that he would back away from frontline politics. Analysts considered this a positive step for Tesla. Before departing in mid-May Musk accompanied Trump in a visit to Saudi Arabia. Tesla plans to secure the EV market in Gulf states and Musk also pitched Tesla’s Optimus humanoid robots to Saudi Prince Salman. In April’s earnings call Musk confirmed that its affordable EV will start production by mid-year. He outlined that Tesla is on track for its launch of the Robotaxi in June. The Tesla CEO stated that the EV producer is the “least affected car company with respect to tariffs”.
- US TRADE WAR: TESLA IMPACT
An escalating trade war has marked President Trump’s second administration. Trade wars commonly have a negative impact on businesses and stocks, as they make goods more expensive as consumers seek alternatives or spend less. In April, broad new tariffs were imposed, followed by a temporary negotiation window. Tesla may be relatively insulated due to its diversified supply chain, but broader economic slowdowns could impact demand for electric vehicles.
- TRUMP AND MUSK CLASH: TESLA’S RECENT PRICE MOVEMENTS
Following Musk’s exit from DOGE, tensions emerged with the administration. Musk expressed concerns about proposed fiscal policies, and President Trump publicly criticised Musk’s stance. Tesla’s price has fallen by 24% this year, although the stock remains 77% higher than a year ago. In May Wedbush brokerage raised its price target to $500 while other analysts maintained their previous valuations.
Conclusion
Tesla continues to navigate a complex business and political landscape. Musk’s decision to step back from politics may allow renewed focus on the company’s strategic goals.