Tesla Global News #22

Over the past week, Tesla’s stock has encountered a stormy period, plummeting nearly 5% on Friday, February 21, 2025, as part of a widespread market sell-off that rattled Wall Street. This sharp decline played a notable role in dragging the Dow Jones Industrial Average to its worst weekly performance since October, reflecting broader investor unease fueled by lackluster economic data and mounting concerns over escalating tariff threats from the Trump administration.

Disappointing indicators, such as weaker-than-expected retail sales and manufacturing output, have stoked fears of an economic slowdown, while proposed tariffs on key trading partners like Canada and China threaten to disrupt Tesla’s global supply chain and profitability. Analysts like Ross Gerber, a prominent Tesla shareholder turned skeptic, have amplified these concerns with a bearish forecast, warning of a potential 50% pullback in Tesla’s stock price throughout 2025.

Gerber points to a trio of challenges: Tesla’s sky-high valuation—currently trading at a price-to-earnings ratio far exceeding traditional automakers—faces pressure from intensifying competition in the electric vehicle (EV) market, where rivals like China’s BYD and legacy manufacturers such as Ford are gaining ground with cheaper, innovative alternatives.

Additionally, Elon Musk’s increasingly polarizing public persona, marked by his vocal political stances and close ties to controversial figures, risks alienating segments of Tesla’s customer base, further clouding the company’s outlook. Despite a robust post-election rally in late 2024, spurred by optimism over Musk’s influence in a Trump-led government, Tesla’s stock has surrendered much of that momentum, sliding 16% year-to-date in 2025. This erasure of gains underscores the precarious road ahead as Tesla grapples with a shifting economic landscape, where rising interest rates, potential EV subsidy cuts, and geopolitical tensions could test its resilience as both a market leader and a cultural lightning rod.

Hands-On Insights into Tesla’s Latest Offering

On a brighter note, Tesla lifted the curtain on its much-anticipated 2025 Model Y last week, with hands-on reviews rolling in that spotlight the vehicle’s refreshed design and cutting-edge upgrades. Dubbed the “Juniper” edition, this latest iteration starts at £44,990 in the UK and blends style with practicality, featuring a striking front lightbar borrowed from the Cybertruck’s futuristic aesthetic, a sleek addition that’s already turning heads.

Inside, a new rear infotainment screen caters to backseat passengers, offering entertainment and control options that elevate the family-friendly appeal of Tesla’s best-selling SUV.

Perhaps most intriguing is the revamped frunk—now equipped with a drain plug—transforming it into a versatile space that owners can use as a cooler for road trips, a wash station for gear, or even a quirky tailgating feature. The tech upgrades are equally impressive: a front fascia camera delivering a 180-degree field of view enhances visibility for tricky maneuvers, while an in-cabin radar system bolsters safety and lays the groundwork for Tesla’s next strides in autonomous driving, potentially inching closer to Full Self-Driving (FSD) reliability.

Available in configurations like the Long Range All-Wheel Drive (£54,490) and Performance (£59,990), the Juniper also promises improved range and acceleration, with reviews noting a smoother, quieter ride thanks to refined aerodynamics and sound insulation. With first deliveries slated for April or May 2025, this launch underscores Tesla’s relentless drive to innovate and keep its lineup fresh, even as it wrestles with sales slumps in critical markets like China and Europe.

Amid a challenging year, the Model Y refresh not only reinforces Tesla’s position as an EV pioneer but also serves as a lifeline to reignite consumer excitement, offering a tangible counterpoint to the stock market woes and brand perception debates swirling around the company.

Global Declines Raise Questions About Brand Perception

Tesla’s sales figures cast a gloomy shadow over the company last week, with freshly released data confirming a steep global decline in January 2025 that has analysts and fans alike rethinking the EV giant’s trajectory. The numbers tell a stark tale: sales plummeted 11.5% in China, Tesla’s second-largest market, where economic headwinds and fierce competition from homegrown rivals like BYD and Nio are eroding its dominance.

In Germany, a jaw-dropping 59% drop stunned observers, largely blamed on the government’s abrupt slashing of EV subsidies late last year, which sent demand for electric vehicles—including Tesla’s—into a tailspin. Meanwhile, the UK saw an 8% dip, a milder but still troubling slide attributed to softening consumer confidence amid rising energy costs and inflation. Beyond these market-specific woes, some point to production hiccups, like the temporary halt at Tesla’s Shanghai Gigafactory to roll out the upgraded Model Y “Juniper,” as a logistical culprit behind the faltering numbers. Yet a growing chorus of critics argues that Elon Musk’s high-profile political activism may be the real elephant in the room.

His outspoken endorsements of polarizing figures—most notably his alignment with Donald Trump and his advisory role in the administration—along with provocative statements on immigration and economic policy, have sparked a backlash. Social media buzzed last week with anecdotes of once-loyal Tesla buyers swearing off the brand in protest, with posts like “Drove my Model 3 to the dealership—done with Musk’s circus” gaining traction.

A survey from a California-based EV group even hinted at a 10% uptick in trade-ins of Teslas for competitors like Rivian and Lucid since Musk’s postelection rhetoric ramped up. Still, it’s not all doom and gloom: UK used car sales offered a silver lining, surging to a record 2,442 Tesla units in January as bargain hunters snapped up pre-owned Models. But this bright spot does little to offset the broader narrative.

The global downturn paints a picture of a company at a crossroads, wrestling with a tangled web of operational challenges—supply chain strains, production bottlenecks—and reputational baggage that threatens to dent its once-unassailable cool factor, all while competitors circle and economic uncertainty looms large.

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