Over the last decade-plus, Tesla and its charismatic CEO Elon Musk have navigated a rollercoaster of soaring successes, daunting setbacks, and dramatic comebacks. Known for his bold strategy and fearless risk-taking, Musk frequently highlighted the company’s precarious past, even acknowledging how close it once came to bankruptcy.
Musk’s willingness to challenge norms and rally against the establishment transformed him into an iconic innovator. Yet recent developments have significantly shifted public perception, thanks largely to Musk’s controversial political alignment and prominent role as the informal spearhead of the Trump administration’s Department of Government Efficiency.
Now, however, it is Tesla itself enduring the sharpest consequences. The automaker has suffered a notable downturn, marked by staggering first-quarter sales declines, mounting global protests labeled “Tesla Takedown,” and tumbling stock prices. Competitors, sensing vulnerability, have swiftly moved to capitalize on Tesla’s troubles, aggressively offering attractive trade-in incentives and other financial perks designed to lure away disillusioned consumers.
Though Tesla may see some immediate relief from President Trump’s recently announced tariffs—due to its significant domestic production presence—these policies might not offer enough safety to reverse current damage. In fact, the tariffs threaten to negatively impact Tesla’s enterprise segment, particularly its energy storage business.
The broader automotive industry is swiftly responding to the uncertain trade climate. Ford, in an aggressive counter measure, has already rolled out discount initiatives aimed at short-term customer acquisition. Meanwhile, Volkswagen told retailers it plans to implement an import fee on cars brought into the U.S.—an indication of growing market recalibrations taking shape industry-wide.
Tesla’s ambitious plans to debut a robotaxi service in Austin this summer currently appear to progress quietly. Unlike autonomous rivals such as Waymo and Cruise—which previously engaged extensively with local authorities to facilitate smooth launches—Tesla has maintained minimal governmental outreach, prompting officials’ concern over the automaker’s predominantly camera-reliant autonomous systems and their associated safety limitations.
Elsewhere in the industry, several startups and EV-focused firms celebrated achievements this week. Harbinger, a California-based manufacturer of medium-duty electric vehicles, has officially commenced production, delivering its initial batch of 100 units to notable customers, including RV giant Thor Industries. However, the company faces complex legal drama, recently intervening in the bankruptcy sale proceedings of troubled EV startup Canoo.
Rivian, confronting production difficulties, reported delivering a mere 8,640 vehicles in the first quarter of 2025—its weakest quarterly figure since late 2022—though it remains optimistic it can meet annual targets of 46,000 to 51,000 deliveries.
On the innovation front, Redwood Materials opened a state-of-the-art research center in San Francisco’s Design District, looking to expand its capabilities around next-generation battery development and advanced recycling practices. Meanwhile, battery inspection startup EVident Battery secured $3.2 million in seed financing, and hydrogen-focused firm Fourier locked down $18.5 million in Series A funding led by prominent venture backers General Catalyst and Paramark Ventures.
In autonomous mobility, Uber announced a strategic collaboration with Dubai’s Road and Transport Authority, marking its initial foray into the UAE city’s autonomous driving arena through a partnership with Chinese technology provider WeRide. WeRide itself recently secured critical public-road testing approvals in France, further expanding its global foothold.
As the EV and autonomous vehicle sectors navigate heightened economic volatility and shifting consumer sentiments, observers will continue watching closely to see how Tesla and other industry players adapt, survive, or capitalize amidst the ongoing disruption.
